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ABC Manufacturing expected to use 30,000 pounds of raw material at a standard price of $20 per pound to produce 5,000 units. However, they actually

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ABC Manufacturing expected to use 30,000 pounds of raw material at a standard price of $20 per pound to produce 5,000 units. However, they actually 28,500 pounds at a price of $23 per pound to produce 5,000 units. Calculate and analyze the direct material cost variance (i.e., how much is price/spending variance and how much is volume/quantity variance)

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