The standard cost of Product B by Mateo company includes three units of direct materials at $5.00 per unit. During June, 28,000 units of direct materials are purchased at a cost of $4.70 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 $ = favorable or unfavorable
- material price variance $ = favorable or unfavorable
- Material quantity variance$ = favorable or unfavorable