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? (1 Marks)

Answer: