a) WRX uses a standard costing system. For production of a fuel cell, standards call for four model RN-3 valves per cell costing $2,300 each. During 2012, the company purchased 250 valves for $587,500. The Company used 246 valves in the production of 60 fuel cells (6 valves were ruined through installation error).
Required:
1. Calculate material price and quantity variances for the model RN-3 valves.