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cess, they actually may generate an unfavorable I36U EXERCISE 11-3. Calculating Material Variances [LO 1] At Frigicor, the standard price for the M640 electrical relay
cess, they actually may generate an unfavorable I36U EXERCISE 11-3. Calculating Material Variances [LO 1] At Frigicor, the standard price for the M640 electrical relay (a component used in the production of a commercial refrigeration unit) is $57. Standards call for 2.5 relays per unit of finished product. In July, the company purchased 150 relays for $8,900. The company used 104 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 elec- trical relay. Indicate whether the variances are favorable or unfavorable. YERCISE 11d Galculating Lahor Variances (Lo 1] At Frigicor, the standard quantity of labor
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