Problem: The standard cost of Product B manufactured by TLC Company includes 3 units of direct materials at $6.20 per unit. During June, 28,000 units of direct materials are purchased at a cost of $5.83 per unit, and 28,000 units of direct materials are used to produce 9,000 units of Product B.
Compute the total materials variance and the price and quantity variances:
total materials variance:
Price Material variance:
Material Quantity variance:
Repeat the question above, assuming the purchase price is $6.45 and the quantity purchased and used is 26,200 units.