The standards for product V28 call for 8.4 pounds of a raw material that costs $19.20 per pound. Last month, 2,300 pounds of the raw material were purchased for $43,700. The actual output of the month was 250 units of product V28. A total of 2,200 pounds of the raw material were used to produce this output. 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)= ${{[a(4)]:#,###}} − ({{[a(3)]:#,###}} pounds × ${{[a(2)]:#,###.00}} per pound)= ${{[a(4)]:#,###}} − ${{[a(7)]:#,###}}= ${{[a(8)]:#,###}} Favorable
b. Standard quantity = Standard quantity per unit × Actual output = {{[a(1)]:#,###.0}} pounds per unit × {{[a(5)]:#,###}} units = {{[a(9)]:#,###}} poundsMaterials quantity variance = (Actual quantity − Standard quantity) × Standard price= ({{[a(6)]:#,###}} pounds − {{[a(9)]:#,###}} pounds) × ${{[a(2)]:#,###.00}} per pound= {{[a(10)]:#,###}} pounds × ${{[a(2)]:#,###.00}} per pound= ${{[a(11)]:#,###}} Unfavorable