roblem A: A product has a standard materials usage and cost of 4 pounds per unit at $7.00 per pound. During the month, 2,400 pounds of materials ere purchased at $7.30 per pound. Production for the month totaled 550 units requiring 2,100 pounds of materials. Requirement: Compute the Materials Price Variance, the Materials (Quantity) Usage Variance and the Total Materials Variance. Also indicate whether he variances are Favorable or Unfavorable. 22 por AQ- SQ - AP SP- Actual Quantity in pounds Standard Quantity in pounds Actual Price per pound Standard Price per pound Material Price Variance - (Actual Quantitty Purchased x Actual Price) - (Actual Quantitty Purchased x Standard Price) AQ AP AQ SP perib. per lb. Materials Price Variance (Make sure all variance amounts are post 1 Material (Quantitty) Usaye Varlance - Actual Quantity Used x Standard Price) - (Standard Quantity Standard Price) AQ SP SO SP per lb perib. 2 3 4 15 26 27 28 29 30 Materials (Qty Usage Variance (Make sure all variance amounts are positi Total Material Variance Direct Materials Variance + or - Material (Quantity) Usage Variance (Hint: W both Variances are favorable or Unfavorable then you add them together and the Total Variance will be Favorable or Unfavorable.) (if one is favorable and the other is unfavorable you will subtract the 2 and the Total Variance will take on the Favorable or Unfavorable trait of the largest variance)