JIT variances Natural Gardens makes recyclable pots for plants and uses JIT to manage inventories and production. The following are standards for a typical one gallon pot: Annual Material Standards 32 ounces of Component X* $0.02 $0.64 2 ounces of Component Y x $0.05 0.10 $0.74 Current Material Standards 27 ounces of Component X * $0.02 $0.54 4 ounces of Component Y x $0.05 0.20 $0.74 In-house experiments indicated that changing the material standard would make the pots stronger, so the company issued an engineering change order for the product in February; this ECO established the current material standards. March production was 12,800 pots. Usage of raw material (all purchased at standard price) in March was 352,000 ounces of Component X and 49,600 ounces of Company Y. Calculate the material quantity variance and the engineering change order (ECO) material variance. Note: Do not use a negative sign with your answer. Material quantity variance $ 48 Favorable ECO material variance $ 48 Favorable