1.

a. Materials price variance = (AQ × AP) – (AQ × SP) = $100,725 – (5,100 × $19.00) = $3,825 U b. Materials quantity variance = SP(AQ – SQ*) = $19.00(4,700 – 4,692) = $152 U *SQ = Standard quantity per unit × Actual output = 2.3 × 2,040 = 4,692 c. Journal entries to record the purchase and use of the raw material: