Question 1a

The following materials standards have been established for a particular product:

Standard quantity per unit of output		4.6	pounds
Standard price	$	13.40	per pound

The following data pertain to operations concerning the product for the last month:

Actual materials purchased		5,100	pounds
Actual cost of materials purchased	$	63,080
Actual materials used in production		4,600	pounds
Actual output		720	units

The direct materials purchases variance is computed when the materials are purchased.

What is the materials quantity variance for the month?

Question 1b

Tharaldson Corporation makes a product with the following standard costs:

	Standard Quantity or Hours			Standard Price or Rate			Standard Cost Per Unit
Direct materials		6.0	ounces	$	3.00	per ounce	$	18.00
Direct labor		0.3	hours	$	11.00	per hour	$	3.30
Variable overhead		0.3	hours	$	9.00	per hour	$	2.70

The company reported the following results concerning this product in June.

Originally budgeted output		3,600	units
Actual output		3,200	units
Raw materials used in production		21,000	ounces
Purchases of raw materials		22,100	ounces
Actual direct labor-hours		500	hours
Actual cost of raw materials purchases	$	42,300
Actual direct labor cost	$	13,600
Actual variable overhead cost	$	3,800

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The labor rate variance for June is: