In producing 700 units of product last period,Azure Company used 5,000 pounds of Material K,costing $34,250.The company has established the standard of using 7.2 pounds of Material K per unit of product,at a price of $7.50 per pound.Calculate the materials price and quantity variances associated with producing the 700 units,and indicate whether they are favorable or unfavorable:

Materials Price Variances

The difference between the actual cost of materials used in production and the standard or expected cost, indicating if materials were more or less expensive than planned.

Quantity Variances

Quantity variances refer to the difference between the actual quantity of materials or labor used and the expected quantity needed for production.

Standard

In the context of business and accounting, standard refers to the established norms or criteria against which performance or practices are measured.