Direct Materials Variances Alvarado Company produces a product that requires five standard pounds per unit. The...

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Direct Materials Variances Alvarado Company produces a product that requires five standard pounds per unit. The standard price is $3.50 per pound. If 6,200 units used 30,400 pounds, which were purchased at $3.57 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance b. Direct materials quantity variance c. Direct materials cost variance Unfavorable Favorable Unfavorable Direct Materials Variances Alvarado Company produces a product that requires five standard pounds per unit. The standard price is $3.50 per pound. If 6,200 units used 30,400 pounds, which were purchased at $3.57 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance b. Direct materials quantity variance c. Direct materials cost variance Unfavorable Favorable Unfavorable

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a Price Variance is calculated as the difference between the actual cost and the standard cost of th... View the full answer