Question
Ruby Company produces a chair that requires 6 yards of material per unit. The standard price of one yard of material is $13.50. During the
Ruby Company produces a chair that requires 6 yards of material per unit. The standard price of one yard of material is $13.50. During the month, 6,500 chairs were manufactured, using 38,600 yards at a cost of $12.69 per yard. Enter favorable variances as negative numbers.
| (a) | Determine the price variance. | $ | Favorable or Unfavorable |
| (b) | Determine the quantity variance. | $ | Favorable or Unfavorable |
| (c) | Determine the cost variance. | $ | Favorable or Unfavorable |
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Accounting And Finance For Non-Specialists
Authors: Eddie McLaney, Peter Atrill
3rd Edition
9780273646327
