Suppose Glass Vessel purchased 700 pounds of materials during March at a total cost of $910. Recall

Question:

Suppose Glass Vessel purchased 700 pounds of materials during March at a total cost of $910. Recall that the firm actually used 650 pounds to make the 300 vases during March and that it budgets to pay $1.25 per pound of materials.

Required:
a. What was Glass Vessel’s purchase price variance for March?
b. Why might Glass Vessel be interested in computing a materials price variance with the amount of materials purchased rather than the amount of materials used?