Mcphail Incorporated has a standard cost system. The standards for direct materials for one of its products specify 6.6 grams of a particular input per unit of output at a standard cost of $7.40 per gram. The company has reported the following actual results for the product for September:
Required:
a. Compute the materials price variance for this input for September.
b. Compute the materials quantity variance for this input for September.

a. Materials price variance = (Actual quantity × Actual price) − (Actual quantity × Standard price)
= Actual quantity × (Actual price − Standard price)
= 41,900 grams × ($7.80 per gram − $7.40 per gram)
= 41,900 grams × ($0.40 per gram)
= $16,760 Unfavorable
b. Standard quantity = 5,700 units × 6.6 grams per unit = 37,620 grams
Materials quantity variance = (Actual quantity × Standard price) − (Standard quantity × Standard price)
= (Actual quantity − Standard quantity) × Standard price
= (37,630 grams − 37,620 grams) × $7.40 per gram
= 10 grams × $7.40 per gram
= $74 Unfavorable