1.

Materials Variances

Krumple Inc. produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.5 ounces of aluminum per can. During the month of April, 296,000 cans were produced using 1,250,000 ounces of aluminum. The actual cost of aluminum was $0.16 per ounce and the standard price was $0.06 per ounce. There are no beginning or ending inventories of aluminum.

Required:

Calculate the materials price and usage variances using the columnar and formula approaches. Enter amounts as positive numbers and select Favorable or Unfavorable.

Materials Price Variance	$fill in the blank 1
Material Usage Variance	$fill in the blank 3

2.

Total Labor Variance

Tico Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.025 hours. During the month of April, 460,000 bottles were produced using 15,000 labor hours @ $10.25. The standard wage rate is $8.25 per hour.

Required:

Calculate the total variance for production labor for the month of April. Enter amounts as positive numbers. If required, round your answer to the nearest cent. $fill in the blank 1