UMPI's Potato Company produces ready$-$to$-$eat mashed potatoes for resale at food stores. UMPI expected to use $5$ pounds of direct Problem #$9$: Processing Costing.

UMPI's Potato Company produces ready$-$to$-$eat mashed potatoes for resale at food stores. UMPI expected to use $5$ pounds of direct

materials to produce one unit $($batch$)$ of product $($mashed$)$ at a cost of $$5$ per pound. Actual results are in for last year, which

indicates $55,000$ batches of mashed potatoes were sold. The company purchased $300,000$ pounds of materials at $$4\mathrm{.}60$ per pound

and used $280,000$ pounds in production.

Calculate the materials price variance. Indicate if it is favorable or unfavorable to the company.

Calculate the materials quantity variance. Indicate if it is favorable or unfavorable to the company.

Provide a logical reasoning for the materials price and quantity variances calculated in $1$ and $2.$

Suggest several possible reasons for the materials price and quantity variances calculated in requirements $(1)$ and $(2).$

materials to produce one unit $($batch$)$ of product $($mashed$)$ at a cost of $$5$ per pound. Actual results are in for last year, which

indicates $55,000$ batches of mashed potatoes were sold. The company purchased $300,000$ pounds of materials at $$4\mathrm{.}60$ per pound

and used $280,000$ pounds in production.

$1)$ Calculate the materials price variance. Indicate if it is favorable or unfavorable to the company.

$2)$ Calculate the materials quantity variance. Indicate if it is favorable or unfavorable to the company.

$3)$ Provide a logical reasoning for the materials price and quantity variances calculated in $1$ and $2.$

$4)$ Suggest several possible reasons for the materials price and quantity variances calculated in requirements $(1)$ and $(2).$