Question: The following standards have been established for a raw material used to make product O84: Standard quantity of the material per unit of output7.1metersStandard price

The following standards have been established for a raw material used to make product O84:

Standard quantity of the material per unit of output7.1metersStandard price of the material$18.30per meter

The following data pertain to a recent month's operations:

Actual material purchased3,400metersActual cost of material purchased$64,090Actual material used in production3,100metersActual output500units of product O84

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

Required:

a. What is the materials price variance for the month?

b. What is the materials quantity variance for the month?

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