Desmond Howard Company makes a product called a Heisman. The owner has hired you to analyze the companys raw materials, specifically metal, for last month. Desmond planned to make 500 units. The company actually produced 600 units and used 2,700 pounds of metal.

Last month Desmond purchased 3,000 pounds of metal for $24,000 on account. You also have the companys standard cost card:

STANDARD COST CARD
	Pounds per unit	Cost/amt	Cost/Unit
DM (metal)	5	$ 7.00	$ 35.00

A) What is the actual cost per ounce of metal purchased last month?

B) What was the materials activity variance

C) What was the materials quantity variance?

D) What was the materials price variance?