Materials Variance:

Delta Woods Inc, Manufactures wood products that are used in small & medium size offices. One of the product is a chair. Last month Delta manufactured 4,000 chairs. The company purchased and used 11,000 feet of wood. The total cost of 11,000 feet of wood was Php37,400. According to direct materials price and quantity standards, one chair requires 2.5 feet of wood at a cost of Php3.60.

Required:

1. Compute for standard cost of wood required to manufacture 4,000 chairs.

2. Compute for materials price variance and material quantity variance.