Reference no: EM132888264

Question - The king company produces toilets for nation distrubitonstanders for partial toilet are:

Materials 9 kg per unit at $2 per kg

During the month of May, the company produced 1000 units. Imfo for the month follows:

Materials: 10,000 kg were purchased and used at a total cost of 17000

Required -

a) Calculate the materials price variance and state if its favourable or unfavourable.

b) Calculate materials quantity variance and state if its favourable or unfavourable .

c) State one reason why these variances in part a) and b) could be favourable or unfavourable.