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Ruby Company Produces a Chair That Requires 5 Yards of Material

question 56

Essay

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, 8,400 chairs were manufactured, using 43,700 yards at a cost of $7.30 per yard.?Determine the
(a) price variance,
(b) quantity variance, and
(c) total cost variance.


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