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The Albright Company uses standard costing and has established the following standards for its single product: Direct materials 2 litres at $3 per litre Direct

The Albright Company uses standard costing and has established the following standards

for its single product:

Direct materials 2 litres at $3 per litre

Direct labour 0.5 hours at $8 per hour

Variable manuf. 0.5 hours at $2 per hour

overhead

During November, the

company made 4,000

units and incurred the

following costs:

Direct materials

purchased

8,100 litres at $3.10 per

litre

Direct materials used 7,600 litres

Direct labour used 2,200 hours at $8.25 per

hour

Actual variable manuf.

overhead $4,175

The company applies variable manufacturing overhead to products on the basis of direct

labour hours.

1.) The material price variance for November is? And how do you know if it is favourable or unfavorable?

2.)The material quantity variance for November is? And how do you know if it is favourable or unfavorable?

show your work in detail.

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