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Calculation of Material Variances.
The standard cost of Product B manufactured by mateo Company includes 3 units of direct materials at $5.30 per unit. During June, 28,000 units of direct materials are purchased at a cost of $4.98 per unit, and 28,000 units of direct materials are used to produce 9,000 units of Product B.
Compute the total materials variance and the price and quantity variances.
Total materials variance
$_____
Materials price variance
Materials quantity variance
Repeat (a), assuming the purchase price is $5.51, and the quantity purchased and used is $26,000 units.
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