# Mateiral Price and Material Quantity Variance

The following standards have been established for a raw material used to make product I 98:

Standard quantity of the material per unit of output 4.5 pounds

Standard price of the material $ 13.90 per pound

The following data pertain to a recent month's operations:

Actual material purchased 2,000 pounds

Actual cost of material purchased $26,200

Actual material used in production 1,300 pounds

Actual output 220 units of product I 98

A- What is the materials price variance for the month?

B- What is the materials quantity variance for the month?

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#### Solution Preview

Standard quantity of the material per unit of output 4.5 pounds

Standard price of the material $ 13.90 per pound

The following data pertain to a recent month's operations:

Actual material purchased ...

#### Solution Summary

This solution helps with a question about accounting. It helps find the material price variance and material quantity variance for the month.