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Direct Materials Variances
Tip Top Corp. produces a product that requires 11 standard gallons per unit. The standard price is $7.50 per gallon. If 4,500 units required 50,500 gallons, which were purchased at $7.35 per gallon, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
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