ABC company are considering to makes a new product, which is a new paper bottle. Now, we have following standards: 427 million bottles produced and $5.52 per 1,000 ozs of paper. They expected to cost $181144 in paper. Hoever, they realize that the company actually produced 505 million cans and used 36 million ozs of paper at the end of the year, and Paper cost the firm $247901.

1. Find Actual Usage of input per unit of output (Ua=? oz / unit. )

2. Find Actual Price per unit of input (P_a = ? $/oz.)

3. Find Budgeted Usage of input per unit of output (U_b = ? oz / unit)

4.Paper price variance

5.Is the above variance favorable or unfavorable?

6.Paper efficiency variance

7.Is the above variance favorable or unfavorable?