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The following standards have been established for a raw material used in the production of product G13:
Standard quantity of the material per unit of output
2.3 liters
Standard price of the material
$19.00 per liter
The following data pertain to a recent month's operations:
Actual material purchased
5,100 liters
Actual cost of material purchased
$100,725
Actual material used in production
4,700 liters
Actual output
2,040 units of product G13
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?
c. Prepare journal entries to record the purchase and use of the raw material during the month. (All raw materials are purchased on account.)
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