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Perez, Inc. recently completed 45,000 units of a product that was expected to consume 5 pounds of direct material per finished unit. The standard price of the direct material was $5.50 per pound. If the firm purchased and consumed 233,000 pounds in manufacturing (cost = $1,213,900), the direct-material quantity variance would be figured as:
The following data relate to product no. 89 of Mansion Corporation:
Direct material standard: 4 square feet at $2.60 per square footDirect material purchased: 29,000 square feet at $2.80 per square footDirect material consumed: 28,500 square feetManufacturing activity: 7,000 units completed
Assume that the company computes variances at the earliest point in time.
Question 1: The direct-material quantity variance is
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