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Question - The standards for product V28 call for 7.7 pounds of a raw material that costs $18.50 per pound. Last month, 1,600 pounds of the raw material were purchased for $29,280. The actual output of the month was 180 units of product V28. A total of 1,500 pounds of the raw material were used to produce this output. The direct materials purchases variance is computed when the materials are purchased.
Required -
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?
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