Final answer:
To compute the total, price, and quantity variances for materials, you can subtract the actual cost from the standard cost.
The price variance is calculated by multiplying the difference between the actual price and the standard price by the actual usage.
The quantity variance is calculated by multiplying the difference between the actual usage and the standard usage by the standard price.
Step-by-step explanation:
To compute the total, price, and quantity variances for materials, we need to compare the actual costs and usage to the standard costs and usage.
Total variance = Actual cost - Standard cost = (Actual price × Actual usage) - (Standard price × Standard usage)
Price variance = (Actual price - Standard price) × Actual usage
Quantity variance = (Actual usage - Standard usage) × Standard price