The Following Standards Have Been Established for a Raw Material

Essay

The following standards have been established for a raw material used to make product P62:
$\begin{array}{lrr} \text {Standard quantity of the material per unit of output } & \text {6.3pounds } \\ \text {Standard price of the material } & \text { \( \$ 15.50 \) per pound} \\\end{array}$

The following data pertain to a recent month's operations:
$$\begin{array} { l c } \text { Actual material purchased } & 6,700 \text { ounds } \\\text { Actual cost of material purchased } & \$ 100,500 \\\text { Actual material used in production } & 6,400 \text { pounds } \\\text { Actual output } & 920 \text { mits of product P62 }\end{array}$$
Required:
a. What is the material price variance for the month?
b. What is the material efficiency variance for the month?