Diamond Company produces a chair that requires 5 yards, of material per unit. The standard price of

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Diamond Company produces a chair that requires 5 yards, of material per unit. The standard price of one yard of material is $7.50. During the month, 8,500 chairs were manufactured, using 43,700 yards at a cost of $7.30.

Determine the

(a) Price variance,

(b) Quantity variance,

(c) Cost variance

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Cost Accounting

ISBN: 978-0759338098

14th edition

Authors: William K. Carter

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