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P Company makes product ABC and shares the standard inputs that make up the product: 10.8 lbs- standard quantity per unit. $4 - standard price

P Company makes product ABC and shares the standard inputs that make up the product:

10.8 lbs- standard quantity per unit.

$4 - standard price per pound.

P company produced 50,000 units of ABC, which took 600,000 pounds of material costing $2,390,000.

Calculate:

Total materials variance. Favorable or unfavorable?

Materials price variance. Favorable or unfavorable?

Materials usage variance. Favorable or unfavorable?

Provide a brief explanation of the variances and include what they mean and the cause.

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