Exam 23: Performance Evaluation Using Variances From Standard Costs

Aquatic Corp.'s standard material requirement to produce a single of Model 2000 is 15 pounds of material @ $110.00 per pound. Last month, Aquatic purchased 170,000 pounds of material at a total cost of $17,850,000. They used 162,000 pounds to produce 10,000 units of Model 2000. Required: Calculate the material price variance and material quantity variance, and indicate whether each variance is favorable or unfavorable.

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