The standard cost of product B manufactured by Bhaskara Company includes 3 units of direct materials at $6.90 per unit. During June, the company purchases 29,000 units of direct materials at a cost of $6.49 per unit and uses 29,000 units of direct materials to produce 9,500 units of product B.

Calculate the materials variance, and the price and quantity variances.

Materials variance		$		Neither favourable nor unfavourableUnfavourableFavourable
Materials price variance		$		FavourableUnfavourableNeither favourable nor unfavourable
Materials quantity variance		$		FavourableUnfavourableNeither favourable nor unfavourable

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Calculate the materials variance, and the price and quantity variances, assuming the purchase price is $7.11 and the quantity purchased and used is 28,000 units.

Materials variance		$		FavourableNeither favourable nor unfavourableUnfavourable
Materials price variance		$		UnfavourableNeither favourable nor unfavourableFavourable
Materials quantity variance		$		Neither favourable nor unfavourableFavourableUnfavourable