Q 4. The following standards have been established for a raw material used in the production of product 44:

	Standard quantity of the material per unit of output...	2.6	pounds
	Standard price of the material.......................................	$14.50	per pound

The following data pertain to a recent months operations:

	Actual material purchased..................	7,600	Pounds
	Actual cost of material purchased......	$110,960
	Actual material used in production....	7,300	Pounds
	Actual output.......................................	2,800	units of product O99

Required:

a. What is the materials price variance for the month?

b. What is the materials quantity variance for the month? (3 Marks )

Answer: