Al's Boxes manufactures corrugated boxes. The standard materials allowed for each box is 0.5 kilograms of paper, which has a standard cost of $5 per kilogram. During April 10,000 kilograms were used to manufacture 19,500 boxes. The actual materials cost was $5.25 per kilogram.
Required:
a. Determine the materials price variance.
b. Determine the materials efficiency variance.

Question

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The Answer of Al's Boxes manufactures corrugated boxes. The standard materials allowed for each box is 0.5 kilograms of paper, which has a standard cost of $5 per kilogram. During April 10,000 kilograms were used to manufacture 19,500 boxes. The actual materials cost was $5.25 per kilogram.
Required:
a. Determine the materials price variance.
b. Determine the materials efficiency variance.

Al's Boxes Manufactures Corrugated Boxes