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Ruby Company Produces a Chair That Requires 5 Yds

Question 5

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Ruby Company produces a chair that requires 5 yds. of material per unit. The standard price of one yard of material is $7.60. During the month, 8,500 chairs were manufactured, using 40,000 yards at a cost of $7.50. Determine the (a) price variance, (b) quantity variance, and (c) cost variance.

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(a) Price variance = ($7.60 - ...

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