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The following materials standards have been established for a particular product:
Standard quantity per unit of output
0.2 grams
Standard price
$18.90 per gram
The following data pertain to operations concerning the product for the last month:
Actual materials purchased
4,800 grams
Actual cost of materials purchased
$86,880
Actual materials used in production
4,200 grams
Actual output
21,080 units
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?
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