Exercise E11-6 Calculating Material Variances
Crown Jewelry produced			1,500	rings during March. The standard cost of each ounce of gold used in a ring
is	$330	per ounce. The standard quantity of material for each ring is a half ounce of gold per ring. The cost
of gold purchased and used in March was				$224,000	at	$350	per ounce. Determine the
material price variance and the material quantity variance for March. Indicate whether each variance is favorable
or unfavorable.
Material Price Variance =
		= (	Amount	-	Amount	) *	Number
		=	Formula	Fav / Unf
Material Quantity Variance =
		= (	Number	-	Number	) *	Amount
		=	Formula	Fav / Unf