TASK 2 - PC 4.2 Calculate material mix and yield variances Using the following equations for Material or Quantity Variance Model. Note: SP Standard Price; SQ Standard Quantity; AQ Actual Quantity; AP Actual Price SP (AQ SQ) and AQ (AP SP) calculate the following variances using the question below:

Kaltham LLC manufactures zips for the fabric industry in the UAE, she has the following direct material standard to manufacture one zip. 1.5 pounds per zip at Dh 4.20 per pound Last 2 weeks 3,400 pounds of materials were bought from the supplier and used to make 2,000 zips for a customer in Abu Dhabi. The total cost of the materials was Dh 13,770.

a) Calculate the actual price per zip:

b) Calculate the price variance:

c) Calculate the quantity variance and indicate whether is adverse or favourable: