Direct Materials Variances Tip Top Corp. produces a product that requires six standard gallons per...
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Direct Materials Variances Tip Top Corp. produces a product that requires six standard gallons per unit. The standard price is $5.50 per gallon. If 2,000 units required 11,800 gallons, which were purchased at $5.83 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 variance 3,894 $1100 $2884 b. Direct materials quantity variance Favorable c. Direct materials cost varilance
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