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Problem
The standard materials cost of a product is $40 per unit, based on 10 pounds of raw materials at a standard cost of $4 per pound. During January 20X9, 1,000 units of product were produced, using 10,200 pounds of raw material at a cost of $4.20 per pound.
The standard cost for materials for January is:
The total materials variance for the month is:
The materials quantity variance is:
The materials price variance is:
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