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Rolle Inc. has a standard costing system and keeps all its costs up to date. The company's main product is copper wind chimes, which are

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Rolle Inc. has a standard costing system and keeps all its costs up to date. The company's main product is copper wind chimes, which are made in a single department. The standard variable costs for one wind chime (unit) are as follows: Direct materials ( 3 yards at $12.50 per yard) $37.50 Direct labor (2 hours at $9.00 per hour) 18.00 Variable overhead ( 2 hours @ $5.00 per direct labor hour) 10.00 Standard variable cost per unit $65.50 The company's normal capacity is 10,000 direct labor hours. Its budgeted fixed overhead costs for the year were $44,000. During the year, it produced and sold 4,900 wind chimes and it purchased 15,000 yards of direct materials; the purchase cost was $12.40 per yard. The average labor rate was $9.10 per hour, and 10,050 direct labor hours were worked. The company's actual variable overhead costs for the year were $48,900, and its fixed costs were $45,000. Using the data given, compute the following using formulas: a. Direct materials price variance b. Direct materials quantity variance c. Total direct materials cost variance

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