Mcphail Inc.has a standard cost system.The standards for direct materials for one of its products specify 6.6 grams of a particular input per unit of output at a standard cost of $7.40 per gram.The company has reported the following actual results for the product for September:
Required:
a.Compute the materials price variance for this input for September.
b.Compute the materials quantity variance for this input for September.
Definitions:
Federal Trade Commission
An independent agency of the United States government, established to prevent unfair or deceptive business practices and to protect consumers.
Truthful
The quality or state of being accurate, honest, and in accordance with facts or reality.
Consumer Product Safety Commission
An agency of the U.S. government tasked with regulating the sale and manufacture of consumer products to ensure they do not pose any unreasonable risk of injury or death to consumers.
Food And Drug Administration
A U.S. Department of Health and Human Services federal agency tasked with ensuring public health protection and promotion by overseeing and managing the safety of food, tobacco products, dietary supplements, prescription and non-prescription drugs, vaccines, biopharmaceuticals, medical devices, and animal health products.
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