Aquatic Corp

question 159

Essay

Aquatic Corp.'s standard material requirement to produce one Model 2000 is 15 pounds of material at $110 per pound. Last month, Aquatic purchased 170,000 pounds of material at a total cost of $17,850,000. It used 162,000 pounds to produce 10,000 units of Model 2000.​
Determine the direct materials price variance and direct materials quantity variance, and indicate whether each variance is favorable or unfavorable.

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Definitions:

Fat Soluble Vitamins

Vitamins that can be dissolved in fats and oils, stored in the body's fatty tissue, and include vitamins A, D, E, and K.

Toxic

Describes substances that are harmful or deadly to living organisms, potentially causing damage through chemical reactions or other pathways when ingested, inhaled, or absorbed.

Essential Amino Acids

Amino acids that the body cannot synthesize on its own and must be obtained through the diet.

Complete Protein

A source of protein that contains an adequate proportion of all nine essential amino acids necessary for the dietary needs of humans.