Video Producers Manufactures Two Types of Videos: Regular and CD

Essay

Video Producers manufactures two types of videos: regular and CD. The regular tapes require 5 units of direct material X at a standard price of $2 per unit. The CDs require 2 units of direct material Y at a standard price of $3.
During January the company purchased 9,000 units of X for $2.10 each and 3,600 units of Y at $3.20 each. January production used 8,800 units of X and 3,400 units of Y. Outputs of finished tapes was 1,750 of each type.
Required:
Compute the price and efficiency variances for each material.
For the price variances use two different responsibility assumptions. First assume that price variances are isolated at the time of purchase; second assume that the price variances are isolated as materials are placed into production.
The efficiency variances for each material are determined during production.