The standard cost of Product B manufactured by Ivanhoe Company includes $3\mathrm{.}2$ units of direct materials at $$6\mathrm{.}60$ per

unit. During June, $27,000$ units of direct materials are purchased at a cost of $$6\mathrm{.}45$ per unit, and $27,000$ units of direct

materials are used to produce $8,300$ units of Product B$.$

$($a$)$

Compute the total materials variance and the price and quantity variances.

Compute the total materials variance and the price and quantity variances, assuming the purchase price is $$6\mathrm{.}70$ and

the quantity purchased and used is $27,000$ units.

Total materials variance

Materials price variance

also determine if variance is favorable, unfavorable or neither for all