The following materials standards have been established for a particular product:
| Standard quantity per unit of output | 3.5 grams |
|---|---|
| Standard price | $12.00 per grams |
The following data pertain to operations concerning the product for the last month:
| Actual materials purchased | 2,300 grams |
|---|---|
| Actual cost of materials purchased | $26,795 |
| Actual materials used in production | 1,600 grams |
| Actual output | 420 units |
The direct materials purchases variance is computed when the materials are purchased.
Indicate if variance is Favorable, Unfavorable or No Effect.
Required:
- What is the materials price variance for the month?
- What is the materials quantity for the month?