Harmon Household Products, Inc., manufactures a number of consumer items for general household use. One of these products, a chopping board, requires an expensive hardwood. During a recent month, the company manufactured 3,400 chopping boards using 2,380 board feet of hardwood. The hardwood cost the company $18,088.
The company's standards for one chopping board are 0.65 board feet of hardwood, at a cost of $8.00 per board foot.
Break down the difference computed in (1) above into a materials price variance and a materials quantity variance.