Aquatic Corp

question 161

Essay

Aquatic Corp.'s standard material requirement to produce a single of Model 2000 is 15 pounds of material @ $110.00 per pound.
Last month, Aquatic purchased 170,000 pounds of material at a total cost of $17,850,000. They used 162,000 pounds to produce 10,000 units of Model 2000.
Required:
Calculate the material price variance and material quantity variance, and indicate whether each variance is favorable or unfavorable.

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Definitions:

In Utero

A Latin term referring to the period when an embryo or fetus is inside the uterus.

Catholic

Relating to the Roman Catholic Church, its teachings, practices, and beliefs.

Yom Kippur

The holiest day in Judaism, marked by fasting and atonement, observed with intensive prayer and repentance.