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Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by
Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller. Actual material purchases amounted to 55,200 kilograms at $0.350 per kilogram. Actual costs incurred in the production of 12,000 units were as follows: Required: 1. Use the variance formulas to compute the directmaterial price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of .is hiro hv selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).)
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