The Following Standards Have Been Established for a Raw Material

question 72

Essay

The following standards have been established for a raw material used to make product O84:
The following data pertain to a recent month's operations:
The direct materials purchases variance is computed when the materials are purchased.
Required:
a.What is the materials price variance for the month?
b.What is the materials quantity variance for the month?

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Definitions:

Federal Government

refers to the national government of a country, which is responsible for governing the country as a whole, as opposed to state, provincial, or local governments.

Clean Water Act

In environmental law, a federal statute that sets requirements for limiting the pollution of the nation’s water sources according to a schedule, based on the most effective technology currently available.

Pollutants

Substances that contaminate the environment, causing harm or discomfort to living organisms.

Waterways

Natural or man-made bodies of water, used for transportation, power, or irrigation.