During March, Patt, Inc. purchases and uses 8,800 pounds of materials costing $35,640 to make 4,000 tiles. Patt's standard material cost per tile is $8 (2 pounds of material * $4.00).

Answer and Explanation:

The computation is shown below:

Total material cost variance

= (Standard quantity * standard price) - (actual quantity * actual price)

= (4,000 tiles * 2 pounds of material * $4) - (8,800 pounds * $35,640 : 8,800 pounds)

= (8,000 pounds * $4) - ($8,800 pounds * $4.05)

= $3,640 unfavorable

For material price variance

= Actual Quantity * (Standard Price - Actual Price)

= 8,800 * ($4 - $4.05)

= $440 unfavorable

For material quantity variance

= Standard Price * (Standard Quantity - Actual Quantity)

= $4 * (8,000 pounds - 8,800 pounds)

= $3,200 unfavorable

The favorable variance is that in which the standard cost is more than the actual cost and the inverse goes to unfavorable variance