The standard cost of Product B manufactured by TLC Company includes 3 units of direct materials at $6.45 per unit. During June, 28,000 units of direct materials are purchased at a cost of $6.06 per unit, and 28,000 units of direct materials are used to produce 9,000 units of Product B.
Compute the total materials variance and the price and quantity variances.
- Total materials variance $ unfavorable or favorable?
- Materials price variance $ unfavorable or favorable?
- Materials quantity variance $ unfavorable or favorable?
Repeat the question above, assuming the purchase price is $6.71 and the quantity purchased and used is 26,200 units.
- Total materials variance $ unfavorable or favorable?
- Materials price variance $ unfavorable or favorable?
- Materials quantity variance $ unfavorable or favorable?