1. Classic Corporation manufactures computer equipment. One of the companys products, a specialty keyboard for hospital use, requires a special synthetic material. During the quarter ending September 30, the company manufactured 60,000 keyboards, using 85,000 pounds of synthetic material. The synthetic material cost the company $284,000.

According to the standard cost card, each keyboard should require 1.3 pounds of synthetic materials at a cost of $3.40/pound.

1. What is the materials price variance?
2. What is the materials quantity variance?