The standard cost card for a product indicates that one unit of the product requires 8 kilograms of a raw material at $0.80 per kilogram. The production of the product in April was 870 units, but production had been budgeted for 850 units. During April, 8,200 kilograms of the raw material were purchased for $6,888 and 7,150 kilograms of the raw material were used in production. The material variances for April were:

$328 unfavorable and $152 unfavorable

Explanation:

a. The computation of the material price variance is shown below:

= Actual Quantity × (Standard Price - Actual Price)

= 8,200 × ($0.80 - $6,888 ÷ 8,200)

= 8,200 × ($0.80 - $0.84)

= 8,200 × $0.04

= $328 unfavorable

b. The computation of the material quantity variance is shown below:

= Standard Price × (Standard Quantity - Actual Quantity)

= $0.80 × (8 × 870 - 7,150)

= $0.80 × (6,960 - 7,150)

= $0.80 × 190

= $152 unfavorable          

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answer; (c) run the name by everyone you can;