Question
Ruby Company produces a chair that requires 6 yards of material per unit. The standard price of one yard of material is $8.70. During the
Ruby Company produces a chair that requires 6 yards of material per unit. The standard price of one yard of material is $8.70. During the month, 6,600 chairs were manufactured, using 39,200 yards at a cost of $8.18 per yard. Enter favorable variances as negative numbers.
| (a) | Determine the price variance. | $fill in the blank 1 | FavorableUnfavorable |
| (b) | Determine the quantity variance. | $fill in the blank 3 | FavorableUnfavorable |
| (c) | Determine the cost variance |
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
7th edition
978-1118344262, 111834426X, 1118162285, 978-1118562208, 1118562208, 978-1118162286
