Product X has a standard direct material cost as follows 30 kilograms of material A...
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Accounting
Product X has a standard direct material cost as follows 30 kilograms of material A at $20 per kg During a period of production, 50 units of X were manufactured, using 1,200 kgs of material A which cost $26,000 Required: (1) Calculate the following variances: (a) the direct material total variance; (b) the direct material price variance; (c) the direct material usage variance. (6 marks) (2) Explain the concept of materiality in variance analysis (4 marks)
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