What is the raw material variance?

What is the raw material price variance?

What is the raw material efficiency variance?

Should the sum of the raw material efficiency variance and the raw material price variance equate the raw material variance? Explain your Answer.

Big Dawgs LTD. manufactures roof shingles. For each box of shingles, the company production plan anticipates using 5 pounds of raw material at $2 per pound. During November the company produced 3,000 boxes of roof shingles. The following information pertains to the company's raw material inventory activity during the month of November. Show your calculations. Beginning Inventory Purchases Pound Dollar s s 16,80 8,000 0 15,00 31,50 0 0 14,70 7,000 0 Ending Inventory