Posters Now uses a standard cost system. Job 67 is for the manufacturing of 800 unites of the product P100. The company’s standards for one unit of product P100 are as follows:
Standard quantity: 11 ounces
Standard price: $3 per ounce
Standard direct labour: 1.5 hours
Standard labor rate: $12 per hour
The job required 8,000 ounces of raw material costing $26,100.
a) What is the materials variance? Show computations.