The Standards for Product V28 Call for 8

Essay

The standards for product V28 call for 8.4 pounds of a raw material that costs $19.20 per pound. Last month, 2,300 pounds of the raw material were purchased for $43,700. The actual output of the month was 250 units of product V28. A total of 2,200 pounds of the raw material were used to produce this output. The direct materials purchases variance is computed when the materials are purchased.
Required:a. What is the materials price variance for the month?b. What is the materials quantity variance for the month?