Indigenous Juice Ltd makes a fruit juice for the Gweru and Kwekwe consumers.

The following data is available:

Materials

100 litres concentrated juice at $2 per litre

200 litres of distilled water @ $2.50 per litre

10 labour hours at $9 per hour

The budgeted monthly production and sales is 500 containers and the selling price is $1 000 per

container. The following details relate to August 2010, when 510 containers of juice were

produced and sold.

Sales $506 500

Materials used:

Concentrated juice 51 600 litres 102 500

Distilled water 10 500 litres 258 800

Labour 5 000 hours at 45 750

calculate

a) Material Price variance

b) Material usage variance