The data shown below relate to an industrial organization that manufactures household appliances.

Standard quantity required of materials item 0009 1 kg.

Standard price per kg. 10

Product in a month appliances 100 kgs.

Actual quantity of materials used 98 kgs.

Actual price paid 11/kg

The following calculations for variances have been made:

Material usage variance = 2 kgs. @ 11 = 22

Material price variance = 100 kgs. 1 = 100

Do you agree with these calculations? If not, provide a correct calculation for the

Variances