The standard price for the Z240 electrical relay (a component used in the production of a commercial refrigeration unit) is $25. Standards call for 2 relays per unit of finished product. In July, the company purchases 100 relays for $2,600. The company used 83 relays in the production of 40 refrigeration units (three relays were damaged in the installation process).

Calculate the material price variance and the material quantity variance related to the Z240 electrical relay. Indicate whether the variances are favorable or unfavorable.

Material Price Variance = Qa (Ps-Pa)
Where Qa is actual quantity used, Ps is standard/budget price and Pa is actual price

Material Efficiency Variance = Ps (Qs-Qa)
Where Ps is standard/budget price, Qs is budget quantity, and Qa is actual quantity used

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Hint: Use the formulas.

Can you list all the variances

Price variance = $83

Price variance = $83

Price variance = $83