The following standards have been established for a raw material used to make product I92: 
The following data pertain to a recent month's operations: 
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:
Anchoring and Adjustment Heuristic
A cognitive bias where an individual relies too heavily on an initial piece of information (anchor) when making decisions, with insufficient adjustments made thereafter.
Gambler's Fallacy
The erroneous belief that if something happens more frequently than normal during a given period, it will happen less frequently in the future, or vice versa.
Coin Flip
A method of making a decision or selecting between two options by tossing a coin and observing which side lands facing up.
Illusory Correlation
The mistaken perception of a relationship between two events or variables that are actually unrelated, often due to cognitive biases.
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