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Domanski Incorporated has established the following raw material standards for its APL4 product: Standard quantity of the material per unit of output 4.5 pounds Standard

Domanski Incorporated has established the following raw material standards for its APL4 product:

Standard quantity of the material per unit of output 4.5 pounds
Standard price of the material $13.90 per pound

The following data pertain to a recent month's operations:

Actual material purchased 2,000 pounds
Actual cost of material purchased $26,200
Actual material used in production 1,300 pounds
Actual output 220 units of product I92

The direct materials purchases variance is computed when the materials are purchased. Required: a. What is the materials price variance for the month?

b. What is a reasonable explanation for this variance?

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c. What is the materials quantity variance for the month?

d. What is a reasonable explanation for this variance?

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