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Ruby Company Produces a Chair for Which the Standard Specifies

question 43

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Ruby Company produces a chair for which the standard specifies 5 yards of material per unit. The standard price of one yard of material is $7.50. During the month, 8,500 chairs were manufactured, using 43,600 yards at a cost of $7.55 per yard.Determine the (a) direct materials price variance, (b) direct materials quantity variance, and (c) total direct materials cost variance.


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