The CMLandscaping Co

question 33

Essay

The C.M.Landscaping Co.uses chicken manure to fortify the soil around trees bearing rare fruit.The price standard used is $3.50 per 10 pound sack of chicken manure.During the current year,the actual purchase price averaged $3.65 per sack,according to the company's purchasing agent.The company purchased and used 1,560 sacks of chicken manure during the year.Compute the direct materials price variance.Be sure to indicate whether it is favorable or unfavorable.

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Definitions:

Innovations

The introduction of new ideas, methods, or products designed to improve effectiveness, efficiency, or competitive advantage.

Knowing-Doing Gap

The discrepancy between what individuals know they should do and what they actually do in practice.

Managers

Individuals responsible for planning, leading, organizing, and controlling the operations of an organization or a part of it.

Trial Run

An initial attempt or test to perform a task or activity before implementing it fully.