The budget of B Skyfall plans in January production of 2,000 products and each product requires 3 pounds of raw material. The budgeted price reaches $2.8 per pound. In reality the company purchased 6,100 pounds of direct material at $2,7

in January .

Compute

a) the total variance for material

b) the price variance for material

c) the quantity variance for material

d) decide, whether the variances (in a, b and c) are favorable (F) or unfavorable (U)

e) there are two departments responsible forn the material expenses - purchase department (purchase of material at the market) and production department (using material for production). which department should obtain a bonus for a good job ? explain