Q.3 The following standards have been established for a raw material used in the production of product O99:

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?

Answer: