Materials Variances

Krumple Inc. produces aluminum cans. Production of $12-$ounce cans has a standard unit quantity of $4\mathrm{.}4$ ounces of aluminum per can. During the month of April, $305,000$ cans were produced using $1,254,000$ ounces of aluminum. The actual cost of aluminum was $$0\mathrm{.}18$ per ounce and the standard price was $$0\mathrm{.}06$ 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. Enter amounts as positive numbers and select Favorable or Unfavorable.

Materials Price Variance Material Usage Variance