Exercise 11-6

Uli Jewelry produced 1,580 rings during March. The standard cost of each ounce of gold used in a ring is $1,030 per ounce. The standard quantity of material for each ring is a 0.5 ounce of gold per ring. The cost of gold purchased and used in March was $737,300 at $1,010 per ounce. Determine the material price variance and the material quantity variance for March. Indicate whether each variance is favorable or unfavorable.(Enter all variances as a positive number.)

Material price variance $ ? (Favorable, Neither Unfavorable nor Favorable, OR Unfavorable)

Material quantity variance$ ? (Unfavorable, Neither Unfavorable nor Favorable, Favorable)