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Assume the following: The standard price per pound is $3.00. The actual quantity of materials purchased and used in production is 62,200 pounds. The actual

Assume the following:

  • The standard price per pound is $3.00.
  • The actual quantity of materials purchased and used in production is 62,200 pounds.
  • The actual purchase price per pound of materials was $3.10.

What is the materials price variance?

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Assume the following:

  • The standard price per pound is $4.50.
  • The actual quantity of materials purchased and used in production is 60,000 pounds.
  • The standard quantity allowed for the actual level of output is 59,200 pounds.

What is the materials quantity variance?

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Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked):

Rent (fixed) $ 3,000
Supplies (variable) $ 5.00q
Utilities (mixed) $ 150 + $ 0.75q

The companys planned level of activity was 2,000 hours and its actual level of activity was 1,850 hours. How much supplies expense would be included in the flexible budget?

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Assume that a companys planned level of activity was 2,000 units and its actual level of activity was 2,200 units. The spending variance for one of its fixed expenses was $200 favorable. The actual amount of the fixed expense was $10,520. What amount of this expense would be included in the companys planning budget?

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