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.
- What is the materials price variance for the month?
- What is the materials quantity for the month?