Materials Variances Krumple Inc. produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.5 ounces of aluminum per can. During the month of April, 303,000 cans were produced using 1,240,000 ounces of aluminum. The actual cost of aluminum was $0.2 per ounce and the standard price was $0.11 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 Unfavorable Material Usage Variance Favorable Feedback Check My Work 1. Determine the material price variance - (actual cost per unit - standard cost per unit) x actual quantity 2. Compare the actual to the standard cost and determine if the result from above is favorable or unfavorable 3. Determine the material usage variance - (actual quantity - standard quantity) standard cost per unit 4. Compare the actual to the standard quantities and determine if the result from above is favorable or unfavorable Review the "How to Calculate Materials Variances: Formula and Columnar Approaches" example in your text. Check My Work Previous Next