Assume the following: The standard price per pound is $2.20. The standard quantity of pounds allowed per unit of finished goods is 4 pounds. The actual quantity of materials purchased is 49,800 pounds. The actual quantity of materials used in production is 50,700 pounds. The actual cost of materials purchased was $112,050. The company produced 13,000 units of finished goods during the period.

a. What is the materials price variance? What does this variance suggest?

b. What is the materials quantity variance? What does this variance suggest?