Mr. Rogers, the production manager, has received a report showing a $\$ 16,500$ unfavorable total materials variance. He knows that production used 10,000 pounds less than the budgeted amount for direct materials. Mr. Rogers also knows that the standard price for direct materials was determined to be 80 cents per pound.

What was the actual cost of direct materials used during the period if the bud-

John Clarke, production manager, has just received a report stating that the total materials variance for last month was $\$ 3,000$ unfavorable. However, he is not certain whether the production foremen are overdrawing from inventory or the purchasing department has been unable to acquire materials at reasonable prices. The information he needs is contained in the following report:

\footnotetext{

Standard production 150,000 units Actual production. 146,000 units Standard materials per unit 2 pounds Materials used in March. 300,000 pounds Standard price for materials $\$ 1.50$ per pound Actual price for materials $\$ 1.47$ per pound

} geted amount was estimated to be 500,000 pounds?