KRUMPLE INC. PRODUCES BAGS OF CORN CHIPS. EACH BAG OF CORN CHIPS USES YELLOW CORN WITH A STANDARD QUANTITY OF $12$ OUNCES AT $$0\mathrm{.}02$ PER OUNCE. THE ACTUAL PRODUCTION IS $40,000$ BAGS OF CORN CHIPS. THE ACTUAL YELLOW CORN USED WAS $520,000$ OUNCES AT $$0\mathrm{.}01$ PER OUNCE.

WHAT IS THE AMOUNT OF THE PRICE VARIANCE? IS THIS A FAVORABLE OR UNFAVORABLE VARIANCE?

WHAT IS THE AMOUNT OF THE USAGE VARIANCE? IS THIS A FAVORABLE OR UNFAVORABLE VARIANCE?

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