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Tip Top Corp. produces a product that requires 12 standard gallons per unit. The standard price is $11 per gallon. If 5,700 units required 70,500
Tip Top Corp. produces a product that requires 12 standard gallons per unit. The standard price is $11 per gallon. If 5,700 units required 70,500 gallons, which were purchased at $11.22 per gallon, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
a. Direct materials price variancefill in the blank 1Favorable/Unfavorableb. Direct materials quantity variancefill in the blank 3Favorable/Unfavorablec. Direct materials cost variancefill in the blank 5Favorable/UnfavorableStep by Step Solution
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