The following materials standards have been established for a particular product: Standard quaintly per unit of output
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Question:
The following materials standards have been established for a particular product:
| Standard quaintly per unit of output | 9.2 grams |
| Standard price | $14.7 per gram |
The following actual data pertain to operations concerning the product for the last month:
| Actual materials purchased | 5,500 grams |
| Actual cost of materials purchased | $76,450 |
| Actual materials used in production | 5,100 grams |
| Actual output | 540 units |
required:
a) What is the materials price variance(MPV) for the month? Is it favorable or unfavorable?
b) What is the materials quantity variance(MQV) for the month? Is it favorable or unfavorable?
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