Exercise E11-7 Calculating Material Variances
WRX uses a standard costing system. For production of a fuel cell, standards call for							5	model RN-3
valves per cell costing		$2,300	each. During 2015, the company purchased				220	valves for
$587,500	The company used		208	valves in the production of		60	fuel cells (	6
valves were ruined through installation error).
Required:
Calculate material price and quantity variances for the model RN-3 valves.
Material Price Variance =
		= (	Amount	-	Amount	) *	Number
		=	Formula	Fav/Unf
Material Quantity Variance =
		= (	Number	-	Number	) *	Amount
		=	Formula	Fav/Unf