Question
The following materials standards have been established for a particular product: Standard quantity per unit of output 3.0 grams Standard price $13.00 per grams The
| The following materials standards have been established for a particular product: |
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| Standard quantity per unit of output | 3.0 | grams |
| Standard price | $13.00 | per grams |
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| The following data pertain to operations concerning the product for the last month: |
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| Actual materials purchased | 1,800 | grams |
| Actual cost of materials purchased | $ 20,970 |
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| Actual materials used in production | 1,100 | grams |
| Actual output | 340 | units |
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| The direct materials purchases variance is computed when the materials are purchased. |
| Required: | |
| a. | What is the materials price variance for the month? |
| b. | What is the materials quantity variance for the month? |
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