Dandridge Company Established a Direct Materials Standard of 4 Pounds

question 44

Essay

Dandridge Company established a direct materials standard of 4 pounds at $4.50 per pound for one of its products.During April,Dandridge produced 22,000 units of the product,using 86,000 pounds of material.
Required:
Based on this information,
(a)Which variance can you calculate?
(b)What is the dollar amount of the variance?
(c)Is the variance favorable or unfavorable?
(d)Do you consider the variance to be sufficiently material that managers should investigate to discover the cause of the variance?

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