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The production manager of a large company reports the following data for the production of the company's single product:
Standard material for each unit: 4 pounds @ $3 per pound ($12 per unit)
Planned production---------------------13,000 units
Actual Production-----------------------11,500 units
Direct materials purchased and used in production 45,000 pounds
Cost of direct materials purchased----------------$148,500
Determine the price per unit of materials. Also determine the price and quantity variances.
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