Exercise 8-1 Compute materials variances (L.O. 4)

During July, the cutting department competed 8,000 units of a product that had a standards materials cost of 2 square feet per unit at $2.40 per square foot. The actual materials purchased consisted of 16,400 square feet at $2.20 per square foot, for a total cost of $36,080. The actual material used this period was 16,160 square feet. Compute the materials price and usage variances. Indicated whether each is favorable or unfavorable. (Note: explain step by step , it should be clear and undrestandable).