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Cassandra Designs Makes Chair Cushions

Question 156

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Cassandra Designs makes chair cushions.The standard direct materials quantity is 1 pound per cushion at a cost of $2.50 per pound.The actual results for the production of 20,000 cushions was 1.25 pounds per cushion,at a cost of $2.40 per pound.Calculate the direct materials price variance and the direct materials efficiency variance.

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