Solution:
Standard quantity of aluminium for actual production = 298000*4.4 = 1311200 Ounce
Actual quantity of aluminium used = 1253000 ounce
Standard price of aluminium = $0.13 per ounce
Actual price of aluminium = $0.20 per ounce
Material price variance = (SP - AP) * AQ = ($0.13 - $0.20) * 1253000 = $87,710 Unfavorable
Material usage variance = (SQ - AQ) * SP = (1311200 - 1253000) * $0.13 = $7,566 Favorable
Materials Variances Krumple Inc. produces aluminum cans. Production of 12-ounce cans has a standard unit quantity...
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