The following standards have been established for a raw material used to make product O84:
The following data pertain to a recent month's operations:
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?

a.Materials price variance = (Actual quantity × Actual price) − (Actual quantity × Standard price)= $64,090 − (3,400 meters × $18.30 per meter)= $64,090 − $62,220= $1,870 Unfavorableb.Standard Quantity = Standard quantity per unit × Actual output = 7.1 meters per unit × 500 units = 3,550 metersMaterials quantity variance = (Actual quantity − Standard quantity) × Standard price= (3,100 meters − 3,550 meters) × $18.30 per meter= −440 meters × $18.30 per meter= $8,235 Favorable