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Lakewood Inc

Question 119

Essay

Lakewood Inc.uses a standard cost system.Materials standards are 7 components per widget at $12 per component.During August,Lakewood Inc.purchased 64,500 components for $768,750,using the components to produce 8,600 widgets.Calculate the:
a.direct materials price variance.
b.direct materials quantity variance.

Correct Answer:

verifed

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a.$5,250 favorable = $768,750 - (64,500 ...

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