Materials Variances

Lata Inc., produces aluminum cans. Production of 10-ounce cans has a standard unit quantity of 4.5 ounces of aluminum per can. During the month of April, 298,000 cans were produced using 1,257,000 ounces of aluminum. The actual cost of aluminum was $0.18 per ounce and the standard price was $0.06 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.

Materials Price Variance	$Unfavorable
Material Usage Variance	$Favorable