Nov 2019 Q4 a.

Walata Ltd manufactures and sells a unique anti-cold formula called the Magic Ball. The product is produced from a combination of two ingredients; R and Q with the following details:
Standard quantity per unit:

Q               3kg

R               2kg

Standard prices:

Q            GH¢2.50

R            GH¢4.00

For the quarter just ended, the following results were recorded:
Actual production                2,000 units

Material               Quantity purchased and used                Price per Kilogramme.
GH¢
Q                                    4,800                                                    4.25
R                                    5,400                                                    2.20

Required:
i) Calculate the price variance for each material.

ii) Calculate the usage variance for each material.