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Question - Golden Company reported the following information concerning its direct materials:
Direct materials purchased (actual) $ 348,400
Standard cost of materials purchased $ 346,500
Standard price times actual amount of materials used $ 229,900
Actual production 28,500 units
Standard direct materials costs per unit produced $ 7.50
Required:
(a) Compute the direct materials price variance.
(b) Compute the direct materials efficiency variance.
(c) Compute the direct materials cost variances.
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