Relief Inc. manufactures portable toilets for use on construction sites. Each toilet requires 40 kilograms of...

 

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Relief Inc. manufactures portable toilets for use on construction sites. Each toilet requires 40 kilograms of plastic and plastic is estimated to cost $5 per kilogram. At the beginning of June, the company had no plastic inventory on hand. During the month, the company purchased 4,500 kilograms of plastic for $24,000. The company produced 100 toilets during the month and had 300 kilograms of plastic on hand at the end of the month. Required: Compute the company's direct materials price and quantity variances. Relief Inc. manufactures portable toilets for use on construction sites. Each toilet requires 40 kilograms of plastic and plastic is estimated to cost $5 per kilogram. At the beginning of June, the company had no plastic inventory on hand. During the month, the company purchased 4,500 kilograms of plastic for $24,000. The company produced 100 toilets during the month and had 300 kilograms of plastic on hand at the end of the month. Required: Compute the company's direct materials price and quantity variances.