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The following standards have been established for a raw material used to make product O 8 4 : Standard quantity of the material per unit
The following standards have been established for a raw material used to make product O:
Standard quantity of the material per unit of output meters
Standard price of the material $ per meter
The following data pertain to a recent month's operations:
Actual material purchased meters
Actual cost of material purchased $
Actual material used in production meters
Actual output units of product O
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?
Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and "None" for no effect ie zero variance Input all amounts as positive values.
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