NAME: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

CHAPTER $10$ Extra Credit $5$ points

Use the following to answer questions $1-2$:

Luc, Inc., manufactures a single product. The company uses a standard cost system and has

established the following direct material standards for one unit of product:

During March, the following activity was recorded by the company:

$-$ The company produced $4,000$ units during the month, which was $500$ less than budgeted.

$-$ A total of $10,000$ pounds of material were purchased at a cost of $$38,000.$

$-$ There was no beginning inventory of materials on hand to start the month; at the end of the

month, $3,000$ pounds of material remained in the warehouse.

$1.$ The materials price variance for March is $($indicate amount and if variance is favorable

or unfavorable$)$ : $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$2.$ The materials quantity variance for March is $($indicate amount and if variance is

favorable or unfavorable$)$ : $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$