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Problem - Direct materials variances - MyTime, Inc., produces electronic timepieces. The company uses mini-LCD displays for its products. Each timepiece uses one display. The company produced 540 timepieces during October. However, due to LCD defects, the company actually used 570 LCD displays during October. Each display has a standard cost of $8.60. Five hundred seventy LCD displays were purchased for October production at a cost of $4,560.
Required - Determine the price variance, quantity variance, and total direct materials cost variance for October.
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