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The following standards have been established for a raw material used to make product O84: Standard quantity of the material per unit of output 8.7
The following standards have been established for a raw material used to make product O84:
Standard quantity of the material per unit of output | 8.7 | meters | |
Standard price of the material | $ | 18.00 | per meter |
The following data pertain to a recent month's operations:
Actual material purchased | 5,500 | meters | |
Actual cost of material purchased | $ | 103,500 | |
Actual material used in production | 4,900 | meters | |
Actual output | 660 | units of product O84 | |
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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