Weingold Inc. engages in routine and customer print jobs for customers. In November 2010, a client specified the use of one of the company’s standard papers for a large job, but asked for a high level of customization relative to the print design. Thus, standard costs could be used for material but not for labor. The following direct material costs were incurred for the client’s job:
Actual unit purchase price ................. $0.032 per sheet
Standard unit price ................ $0.036 per sheet
Quantity purchased and used in November ...... 980,000 sheets
Standard quantity allowed for good production .... 984,000 sheets
Calculate the material price variance and the material quantity variance for the client’s job.