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Standard Costing and Variance Analysis for Direct Material : A company sets standard costs for its product as follows: Direct materials: 5 kilograms per unit

Standard Costing and Variance Analysis for Direct Material: A company sets standard costs for its product as follows:

Direct materials: 5 kilograms per unit at $4 per kilogram

During the month, the company produced 2,500 units and incurred the following actual costs:

Direct materials: 13,000 kilograms at $4.20 per kilogram Calculate the direct materials price and quantity variances.

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