Exercise 24.3, page 1062 a. Compute Blue's material price variance. Actual quantity used: 150 x 1,000 = 150,000 Actual price per gram of materials: 2,700,000 = $18 150,000 Material price variance: 150,000 x (18 - 18) = $0 b. Compute the standard quantity of materials allowed per batch of Allegro produced. 150,000 = 2,500 grams 60 c. Why would you not expect Blue to have a large materials quantity variance? I would not expect Blue to have a large materials quantity variance, because the company is a pharmaceutical and need to have precise number of materials.