Lata Inc., produces aluminum cans. Production of 15-ounce cans has a standard unit quantity of 4.5 ounces of aluminum per can. During the month of April, 295,000 cans were produced using 1,240,000 ounces of aluminum. The actual cost of aluminum was $0.13 per ounce and the standard price was $0.01 per ounce. There are no beginning or ending inventories of aluminum.

Required: Calculate the materials price and usage variances using the columnar and formula approaches.

Materials Price Variance

Material Usage Variance