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Martin Company manufactures a powerful cleaning solvent. The main ingredient in the solvent is a raw material called Echol. Information concerning the purchase and use

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Martin Company manufactures a powerful cleaning solvent. The main ingredient in the solvent is a raw material called Echol. Information concerning the purchase and use of Echol follows: Purchase of Echol Echol is purchased in 15-gallon containers at a cost of Siis per container. A discount of 2% is offered by the supplier for payment within 10 days, and Martin Company takes all discounts. Shipping costs, which Martin Company must pay, amount to $130 for an average shipment of 100 15-gallon containers of Echol. Use of Echol The bill of materials calls for 7.6 quarts of Echol per bottle of cleaning solvent. (Each gallon contains four quarts.) About 5% of all Echol used is lost through spillage or evapora- tion (the 7.6 quarts above is the actual content per bottle). In addition, statistical analysis has shown that every 41st bottle is rejected at final inspection because of contamination. Required: 1. Compute the standard purchase price for one quart of Echol. 2. Compute the standard quantity of Echol (in quarts) per salable bottle of cleaning solvent. Using the data from (l) and (2) above, prepare a standard cost card showing the standard cost of Echol per bottle of cleaning solvent Q. (REQUIRED) The following standards have been established for a raw material used to make product 192: Standard quantity of the material per unit of output Standard price of the material. 4.5 pounds $13.90 per pound The following data pertain to a recent month's operations: Actual material purchased. Actual cost of material purchased Actual material used in production Actual output 2.000 pounds $26.200 1,300 pounds 220 units of product 192 The direct materials purchases variance is computed when the materials are purchased. Required: a. What is the materials price variance for the month? b. What is the materials quantity variance for the month

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