Ruby Company Produces a Chair That Requires 5 Yards of Material

question 136

Short Answer

Ruby Company produces a chair that requires 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:
(a) price variance
(b) quantity variance
(c) cost variance.

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Definitions:

Secondary Research

The practice of using existing research and data, gathered and analyzed by others, to support new analyses, conclusions, or insights.

Primary Research

An approach to gathering data directly through original or firsthand research methods, such as surveys, interviews, or experiments.

Observational Research

A research method involving the systematic observation and recording of behaviors and phenomena in their natural environment, without intervention by the researcher.

Environmental Impact

The effect that human activities and natural phenomena have on the environment, including ecosystems, biodiversity, and human health.