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Question - At Duffy Dog, the standard price for the M640 electrical relay (a component used in the production of a commercial refrigeration unit) is $55. Standards call for 3.0 relays per unit of finished product. In July, the company purchased 155 relays for $8,990. The company used 95 relays in the production of 47 refrigeration units (4 relays were damaged in the installation process). Calculate the material price variance and the material quantity variance related to the M640 electrical relay. Indicate whether the variances are favorable or unfavorable.
How many units would Eastwood have to sell in a year to earn a profit before taxes of $90,000
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