Denton’s materials quantity variance for the current month was exactly one-half of its materials price variance. Both variances were favorable. The company’s cost accountant has supplied the following standard cost information:
Standard price per pound of materials- $12
Actual pounds purchased and used during the month- 800 pounds
Actual cost per pound of materials purchased and used- $15
Actual units manufactured during the month- 600 units
Normal productive output per month- 700 units
How do I compute Denton’s materials price variance?