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Nike, Inc. sets the standard direct material cost for one pair of shoes at $30. During the period, 20,000 pairs were produced, and actual material

Nike, Inc. sets the standard direct material cost for one pair of shoes at $30. During the period, 20,000 pairs 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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