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Company X makes blended dress shirts. The company planned to produce and sell 35,000 shirts during 2019, but high demand led Company X to produce
Company X makes blended dress shirts. The company planned to produce and sell 35,000 shirts during 2019, but high demand led Company X to produce and sell 38,000. The only direct materials needed to manufacture the shirts are polyester and cotton. The standard quantities and prices of direct materials for each shirt are below: Standard Quantities for 1 Standard prices shirt 2.7 yards cotton fabric $1.80/yard cotton -6 yards polyester fabric $2.40/yard polyester During 2019. Company X purchased 24000 yards of polyester fabric for $2.45 per yard and 106.000 yards of cotton fabric for $1.70 per yard. The Company's accountant reported that 22.000 yards of polyester fabric were used in production during the year and that the Company's total quantity variance for direct materials (cotton and polyester) was $1.200 favorable. What was the company's total price variance for direct materials de both cotton and polyester) during 2019? Enter favorable variances as positive numbers, and unfavorable variances as negative numbers
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