Reference no: EM132999651

Question - ACME company's production budget for August is 81,100 units and includes the following components unit costs; direct materials $8.00, direct labor $ 10.50, variable overhead $ 6.50. Budgeted fixed overhead is $ 38.000. Actual production in August was 19.872 units. Actual unit component costs incurred during August include  direct materials $ 9.00, direct labor $ 10.00, variable overhead $ 7.50. The actual fixed overhead was $ 40.100. The standard direct material cost per unit consists of 8 pounds of raw material $ 1 per pound. During August, 223,560 pounds of raw materials were used that were purchased at $ 0.80 per pound. Calculate the materials price variance and materials usage variance for August.