The following materials standards have been established for a particular product: 
The following data pertain to operations concerning the product for the last month: 
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?
Definitions:
Paid
Refers to the settlement of an obligation or receipt of money or goods in exchange for services or goods provided.
Net Book Value
The current value of an asset or a company after subtracting total liabilities from total assets.
Accumulated Depreciation
The cumulative amount of depreciation that has been charged to a fixed asset throughout its period of use.
Original Cost
The initial expenditure involved in acquiring an asset, including purchase price, transportation, and installation.
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