Acc400 Accounting for Decision Making: E24.4 Gumchara Corporation reported the following

Acc400 Accounting for Decision Making

Exercise 24.4 Computing Materials Cost Variances
Gumchara Corporation reported the following information with respect to the material required to manufacture amalgam florostats during the current month:
Standard price per gram of material $1.25
Standard quantity of material per amalgam fiorostat 4 grams
Actual materials purchased and used in production 2,800 grams
Actual amalgam florostats produced during the month 520 units
Actual cost of materials purchased $3,920
Normal monthly output 550 units

Standard quantity of materials used in production 2,080 grams
Actual price per gram of materials purchased and used $1.40

a. Determine Gumchara's materials price variance.
b. Determine Gumchara's materials quantity variance.
c. Will Gumchara's overhead volume variance be favorable or unfavorable? Why?
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