Ruby Company produces a chair that requires 5 yards of material per unit. The standard price of one yard of material is $7.50. During the month, 8,400 chairs were manufactured, using 43,700 yards at a cost of $7.30 per yard.?Determine the
(a) price variance,
(b) quantity variance, and
(c) total cost variance.

Question

Ruby Company produces a chair that requires 5 yards of material per unit. The standard price of one yard of material is $7.50. During the month, 8,400 chairs were manufactured, using 43,700 yards at a cost of $7.30 per yard.?Determine the 
(a) price variance, 
(b) quantity variance, and 
(c) total cost variance.

Quizplus · Accepted Answer

The Answer of Ruby Company produces a chair that requires 5 yards of material per unit. The standard price of one yard of material is $7.50. During the month, 8,400 chairs were manufactured, using 43,700 yards at a cost of $7.30 per yard.?Determine the 
(a) price variance, 
(b) quantity variance, and 
(c) total cost variance.

Ruby Company Produces a Chair That Requires 5 Yards of Material