Hanks is a chain of 55 coffees hops.The standardamount of ground coffee per cup is .75 ounces. During the month of September,the company sold 325,000 cups of coffee (reported via electronic cashregisters), and the 55 shops reported using 16,800 pounds of coffee. Alsoduring September, the company purchased 19,000 pounds of coffee at a cost of$290,700. The standard price per pound is $15.

Required

a. Computematerial price and quantity variances. b. Do either or both of the variances warrantinvestigation?