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Magpie Corporation uses the total cost method of product pricing. Below is cost information for the production and sale of 61,400 units of its sole
Magpie Corporation uses the total cost method of product pricing. Below is cost information for the production and sale of 61,400 units of its sole product. Magpie desires a profit equal to a 23% return on invested assets of $617,000. Fixed factory overhead cost Fixed selling and administrative costs Variable direct materials cost per unit Variable direct labor cost per unit Variable factory overhead cost per unit Variable selling and administrative cost per unit $39,700 7,900 5.24 1.88 1.13 4.50 The dollar amount of desired profit from the production and sale of Magpie's product is Oa. $617,000 Ob. $141,910 Oc. $113,528 Od. $283,820 Ruby Company produces a chair for which the standard specifies 7 yards of material per unit. The standard price of one yard of material is $14.10. During the month, 7,000 chairs were manufactured, using 48,000 yards at a cost of $14.95 per yard. Determine the following: Enter favorable variances as negative numbers. a. Direct materials price variance b. Direct materials quantity variance $ c. Total direct materials cost variance
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