At Golden, the standard price for the M640 electrical relay (a component used in the production of a commercial refrigeration unit) is $55. Standards call for 3.0 relays per unit of finished product. In July, the company purchased 142 relays for $8,236. The company used 105 relays in the production of 50 refrigeration units (4 relays were damaged in the installation process).

Required: calculate the material price variance and the material quantity variance related to the M640 electrical relay. Indicate whether the variances are favorable or unfavorable.

Material Price Variance		$		select an option Unfavorable / Favorable / Neither Unfavorable nor Favorable
Material Quantity Variance		$		select an option Favorable / Neither Unfavorable nor Favorable / Unfavorable

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