Nantucket, Inc

question 121

Essay

Nantucket, Inc.uses a standard cost system in which direct materials are carried at standard cost.Standards for one unit of product are: standard quantity of 2 feet, standard price $1.50 per foot.During May, Nantucket purchased 16,000 feet of direct material at a cost of $30,000 and used 15,500 feet in production of 7,500 units.
Required:
Calculate the direct materials price and quantity variances and indicate whether the variances are favorable or unfavorable.

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Definitions:

Q-Data Technique

A method used in psychology that involves self-report questionnaires to gather data on individual traits, attitudes, or behaviors.

Multivariate Approach

A research strategy that involves analyzing multiple variables at once to understand complex phenomena or relationships.

Factor Analysis

A statistical method used to describe variability among observed, correlated variables in terms of potentially lower-dimensional, unobserved variables called factors.

Statistical Procedure

A method used in analyzing data that allows researchers to infer or deduce properties about a population based on a sample.