Ruby Company Produces a Chair That Requires 5 Yds

question 30

Essay

Ruby Company produces a chair that requires 5 yds. 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) cost variance.

---

Definitions:

Fetus

A fetus refers to a developing mammal or human after the embryonic stage and before birth, characterized by rapid growth and the formation of body structures.

Chorion

The outermost membrane surrounding an embryo of a reptile, bird, or mammal, contributing to the formation of the placenta in mammals.

Hairs

Filamentous biomaterials growing from the dermis of mammals, serving various functions including temperature regulation and sensation.

Placenta

An organ in mammals that develops during pregnancy, providing oxygen and nutrients to the fetus while removing waste products.