Hurricane Catalyst produces a variety of specialty chemicals. Hurricane uses a standard costing system. On June 19, it purchased 4,400 pounds of AD98 for $105,380 because it had no inventory of this chemical input. The standard price of AD98 is $23.50 per pound. On July 28, Hurricane produced 1,200 units of a catalyst, ZZ875, using 4,350 pounds of AD98. The standard cost sheet for ZZ875 calls for 3.5 pounds of AD98 for each unit of ZZ875 produced.
Required:
Compute the following quantities:
a. Price variance of AD98.
b. Quantity variance of AD98 used in producing ZZ875.
c. Dollar amount of AD98 charged to ZZ875's work-in-process inventory on July 28.
d. AD98's raw material inventory balance as of July 29.