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Unformatted text preview: Problem Using the general models : Significance: The $21 favorable price variance means that the company was able to purchase direct materials at less than the standard cost savings of $21. The unfavorable quantity variance of $50 means that the company used 10 KGs more materials than required for the level of output (2000 parkas). Total Variance is $29 unfavorable ( $21+(50)) means that the company spent $29 more than the standard cost to make the $2000 parkas. Solution...
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This note was uploaded on 04/21/2011 for the course ACTG 211 taught by Professor Staff during the Spring '08 term at Ill. Chicago.
- Spring '08
- Managerial Accounting