Question 8.1 (Total: 18 marks)

The following materials standards have been established for product Wand:

Standard quantity per unit of output	10.0 kilograms
Standard price	$16.20 per kilograms

The following data pertains to operations concerning product Wand for the last month:

Actual materials purchased	7,300 kilograms
Actual cost of materials purchased	$120,000
Actual materials used in production	7,122 kilograms
Actual output	740 units

Required:

1. What is the materials price variance for the month?
2. What is the materials quantity variance for the month?