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Question - The following information is available for Great Outdoors Corporation, which produces sturdy camping chairs.
Actual camping chairs produced = 5,000
Actual direct materials purchased and used = 21,250 pounds
Actual direct materials cost per pound = $4.90 per pound
Budgeted camping chairs produced = 5,500
Budgeted direct materials purchased and used = 22,000 pounds
Budgeted total spending on direct materials = $110,000
Required - Use the information presented for Great Outdoors to compute the materials spending variance.
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