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Yama Industiers has collected the following data for its Thunderbolt line of products:
Direct materials standard: 10 pounds per unit
Direct materials standard cost: $0.75 per pound
Actual Direct Materials Used: 40,000 pounds
Actual finished goods produced: 4,500 units
Question 1: What is the direct materials quantity variance?
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Computing the lower of cost or market on an item-by-item basis, determine what amount would be reported on the balance sheet for inventory.
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