Gyne Company makes Product X using special plastic as the main material. The company made 1,000 units of X using 4,500 lbs of plastic. The plastic actually cost the company $22 per lbs (total $99,000). According to the companys standards, each unit of X should require 5 lbs of plastic, at a price of $20 per lbs.

(a) What cost of plastic should have been incurred to make 1,000 units of X?

(b) How much is the spending (total) variance

(c) Is the spending variance favorable or unfavorable?

(d) Compute the price variance

(e) Is the price variance favorable or unfavorable?

(f) Compute the quantity variance

(g) Is the quantity variance favorable or unfavorable?