Camps Incorporated has a standard cost system. The standards for direct materials for one of its products specify 4.4 ounces of a particular input per unit of output at a standard cost of $6.40 per ounce. The company has reported the following actual results for the product for May:
Required:
a. Compute the materials price variance for this input for May.
b. Compute the materials quantity variance for this input for May.

a. Materials price variance = (Actual quantity × Actual price) − (Actual quantity × Standard price)
= $86,140 − (14,600 ounces × $6.40 per ounce)
= $86,140 − $93,440
= $7,300 Favorable
b. Standard quantity = 2,900 units × 4.4 ounces per unit = 12,760 ounces
Materials quantity variance = (Actual quantity × Standard price) − (Standard quantity × Standard price)
= (Actual quantity − Standard quantity) × Standard price
= (12,770 ounces − 12,760 ounces) × $6.40 per ounce
= 10 ounces × $6.40 per ounce
= $64 Unfavorable