Final answer:
To calculate the materials variance, subtract the actual cost of materials used from the standard cost of materials used. The materials price variance is calculated by subtracting the standard cost from the actual cost. The materials quantity variance is calculated by multiplying the difference between the standard and actual quantity by the standard price.
Step-by-step explanation:
The materials variance can be calculated by subtracting the actual cost of materials used from the standard cost of materials used. In this case, the standard cost is the purchase price of $5.97 multiplied by the quantity used of 28,000 units, resulting in a standard cost of $167,160. The actual cost is not provided in the question, so it cannot be calculated. Therefore, the materials variance cannot be determined.
The materials price variance can be calculated by subtracting the standard cost of materials used from the actual cost of materials used. In this case, the standard cost is still $167,160. If the actual cost is $329,560, the materials price variance would be unfavorable because the actual cost is higher than the standard cost.
The materials quantity variance can be calculated by multiplying the difference between the standard quantity and the actual quantity by the standard price. In this case, the standard price is $5.97. If the actual quantity is 28,000 units, the materials quantity variance would be favorable because the actual quantity is equal to the standard quantity.