Materials Variances

Krumple Inc. produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.4 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 $0.18 per ounce and the standard price was $0.07 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	$