Organic Manufacturing Co. manufactures the product Orgex, which requires three raw materials. Production is in batches of 2,500 pounds of materials. Any waste is thrown away. The firm uses standard costs as a control device. Its standard costs for materials are as follows:

During the month of July 2019, 25,000 pounds of Orgex were produced. There was no beginning or ending inventory of work in process. The materials actually used during July are listed below:

INSTRUCTIONS
1. Compute the total variance between the actual cost of the materials used during July and the standard cost of the materials. Also compute the total variance for each type of material.
2. Analyze the variances for each type of material for the month.
Analyze: Which raw materials were obtained at lower-than-standard unit costs?

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Standard Cost per Pound Standard Cost per Batch Materlal Quantity Natural resins Vegetable tint Hardener $1,430 22 130 2,200 lb. 100 lb. 200 lb. $0.65 0.22 0.65 Totals 2,500 lb. $1,582 Material Total Cost Quantity $13,923 Natural resins Vegetable tint 22,100 lb. 1,150 lb. 2,050 lb. 230 1,353 Hardener