Determining Price and Quantity Variances

Question: One of the products of Hearts and Flowers is a one pound box of chocolate candy, packaged in a box bearing the customers logo (minimum order 100 boxes). The standard cost of the chocolate candy used is $2 per pound. During November 20,000 of these one pound boxes were produced, requiring 20,800 pounds of chocolate candy at a total direct materials cost of $42,640. Determine the materials price and quantity variances for November with respect to the candy used in producing this product.

The expert determines price and quantity variances for products of Heart and Flowers.