The Following Materials Standards Have Been Established for a Particular

question 172

Essay

The following materials standards have been established for a particular product:
$\begin{array}{|l|r|}\hline \text { Standard quantity per unit of output } & 3.6 \text { metre } \\\hline \text { Standard price } & \$ 10.20 \text { per metre } \\\hline\end{array}$
The following data pertain to operations concerning the product for the last month:
$\begin{array}{|l|r|}\hline \text { Actual materials purchased } & 7,100 \text { metres } \\\hline \text { Actual cost of materials purchased } & \$ 68,515 \\\hline \text { Actual materials used in production } & 6,600 \text { metres } \\\hline \text { Actual output } & 1,780 \text { units } \\\hline\end{array}$
Required:
a)What was the materials price variance for the month?
b)What was the materials quantity variance for the month?

---

Definitions:

FTC

The Federal Trade Commission, a U.S. federal agency tasked with protecting consumers and competition by preventing anticompetitive, deceptive, and unfair business practices.

Telemarketers

Telemarketers are individuals or companies that market goods or services via telephone calls, often using sales techniques to persuade potential customers to make purchases or donations.

Mailed Catalogs

Printed listings of items for sale, distributed to potential customers through the mail.

Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act is a U.S. statute established to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection, and to provide consumers with an avenue for disputing and obtaining validation of debt information.