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Question - Rev ABC Company uses a standard costing system in connection with the manufacture of their product "X". Each unit of finished product contains 2 yards of a direct material. However, a 20% direct material spoilage calculated on input quantities occurs during the manufacturing process. The standard cost of the direct material is P3 per yard. For the month, the company purchased 100,000 yards of the direct material for P350,000 and used 90,000 yards to produce 40,000 units of Material X.
Required -
1. Compute the price variance.
2. Compute the efficiency variance.
3. Compute the materials variance.
Prepare a 200-300 word paper discussing the steps in testing a research hypothesis.
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