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Nataly [62]
4 years ago
8

Ruby Company produces a chair for which the standard specifies 5 yards of material per unit. The standard price of one yard of m

aterial is $7.50. During the month, 8,500 chairs were manufactured, using 43,600 yards at a cost of $7.55 per yard.
Mathematics
1 answer:
azamat4 years ago
3 0

Answer

given,

Standard price = $ 7.50

8,500 chairs were manufactured, using 43,600 yards at a cost of $7.55 per yard.

Price Variance = Actual Quantity x (Actual Rate - Standard Rate)

                         = 43,600 x (7.55 - 7.50)

                         = 2180 (U)

Quantity Variance = Standard Rate x (Actual Quantity - Standard Quantity)

                              = 7.5 x (43600 - 8500 x 5)

                              = 8250 (U)

Cost Variance = 2180+ 8250 = 10430 (U)

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