The standard cost of Product B manufactured by Mateo company includes three units of direct materials at $5.50 per unit. During June, 28,000 unit of direct materials are purchased at a cost of $4.70 per unit, and 28,000 units of direct materials are used to produce 9,000 units of Product B

Compute the total materials variance and the price and quantity variances

The formula is:
Materials price variance = Actual Quantity x (Standard Price - Actual Price)
Note: if the firm has a standard costing system in place, this variance will be calculated on actual quantity purchased, in other cases use actual quantity used.
Materials Usage Variance = (Standard Quantity Allowed - Actual Quantity used) x Standard Price per unit
Total Materials variance is the total of price and usage variance.