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A & G makes wrought iron table and chair sets. During April, the purchasing agent bought 25,600 pounds of scrap iron at $1.94 per pound. During the month, 21,400 pounds of scrap iron were used to produce 600 table and chair sets. Each set requires a standard quantity of 35 ounds at a standard cost of $1.90 per pound.
A. For April, compute the direct material price variance (based on the quantity purchased) and the direct material quantity variance (based on quantity used).Identify the titles of individuals in the firm who would be responsible for each of the variances.Provide some possible explanations for the variances computed in part a.
Compare and contrast the differences in accounting processes and procedures that medium sized companies such as yours go through when going public.
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