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AJack Partnership manufactures jackhammers. AJack Partnership is looking for guidance in the variances of its standard cost system. It would like you to assist in understanding material price, material quantity, rate, efficiency, and overhead variances. The standard cost card information for unit of product is below.
Standard cost card per unit of product Direct materials:
1. Compute the material price variance for Jan 15, 20XX.
2. Provide the accounting entry for the price variance. Labor
3. Provide the accounting entry for the labor rate and efficiency variances. Overhead
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