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Problem - Tercer reports the following for one of its products.
Direct materials standard (4 lbs. @ $3 per lb.) $12 per finished unit
Actual direct materials used (AQ) 330,000 lbs.
Actual finished units produced 68,000 units
Actual cost of direct materials used $907,500
AQ = Actual Quantity
SQ = Standard Quantity
Required - Compute the direct materials price and quantity variances and classify each as favorable, unfavorable or no variance.
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