The following standards have been established for a raw material used to make product I92:
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Standard quantity of the material per unit of output
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4.5 pounds
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Standard price of the material
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$13.90 per pound
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The following data pertain to a recent month's operations:
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Actual material purchased
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2,000 pounds
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Actual cost of material purchased
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$26,200
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Actual material used in production
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1,300 pounds
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Actual output
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220 units of product I92
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Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?