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The standard cost of Product B manufactured by Pharrell Company includes 2.6 units of direct materials at $7.00 per unit. During June, 27,300 units of direct materials are purchased at a cost of $6.75 per unit, and 27,300 units of direct materials are used to produce 10,400 units of Product B.
Question 1: Compute the total materials variance and the price and quantity variances.
Question 2: Compute the total materials variance and the price and quantity variances, assuming the purchase price is $7.05 and the quantity purchased and used is 26,700 units.
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