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Luckett Company's standards call for two feet of direct materials for each unit. The standard price of one foot is $2. Actual production was 50,000
Luckett Company's standards call for two feet of direct materials for each unit. The standard price of one foot is $2. Actual production was 50,000 units requiring 105,000 feet of direct materials. Luckett purchased 107,000 feet at a unit price of $2.1 per foot. Calculate the direct materials price and quantity variances and indicate whether the variances are favorable or unfavorable.
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