Answer:
Gamma Company
The input price and input quantity variances are:
Input Price - Unfavorable; Input Quantity - Unfavorable
Explanation:
a) Data and Calculations:
Budgeted pounds of materials per unit = 2
Budgeted cost per pound = $100
Budgeted material price per unit = $200
Budgeted production and sales volume = 5,000 units
Budgeted materials = 10,000 pounds
Actual production and sales volume = 4,000 units
Standard quantity of materials for actual production = 8,000 (4,000 * 2)
Actual quantity of materials used = 8,080
Quantity variance = 80 (8,080 - 8,000) Unfavorable
Total budgeted cost = $800,000 (8,000 * $100)
Total actual cost = $824,160 (8,080 * $102)
Price variance = $2 ($102 - $100) Unfavorable
