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General Electric sets the standard direct material cost for one unit of product at $40. During the period, 15,000 units were produced, and actual material
General Electric sets the standard direct material cost for one unit of product at $40. During the period, 15,000 units were produced, and actual material costs amounted to $600,000. Calculate the material price variance and quantity variance. Discuss how these variances can help management identify areas of improvement in material procurement and usage efficiency.
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