The standard cost of Product B manufactured by MIT Company includes 3.00 units of direct materials at $5.00 per unit. During June, 29,000 units of direct materials are purchased at a cost of $4.70 per unit, and 29,000 units of direct materials are used to produce 9,500 units of Product B.
(a) Compute the total materials variance and the price and quantity variances.
- Total materials variance
- Materials price variance
- Materials quantity variance
b) Compute the total materials variance and the price and quantity variances, assuming the purchase price is $5.15 and the quantity purchased and used is 28,000 units.
- Total materials variance
- Materials price variance
- Materials quantity variance