Sample Question

Springeld Jewelry produced 1.570 rings during March. The standard cost of each ounce of gold used in a ring is $1,050 per ounce. The standard quantity of material for each ring is a half ounce of gold per ring. The cost of gold purchased and used in March was $752,100 at $1,090 per ounce. Determine the material price variance and the material quantity variance for March. Indicate whether each varia nce is favora ble or unfavorable. (Enter all variances as a positive number.) Material price variance 5.5 i i i V i Material quantity variance $ i i i v