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Home Company manufactures tables with vinyl tops. The standard material cost for the vinyl user per Type-R table is $7.80 based on six square feet of vinyl at a cost of $1.30 per square foot. A production run of 1,000 tables in January 20XX resulted in usage of 6,400 square feet of vinyl at a cost of $1.20 per square foot, a total cost of $7,680. Raw materials are carried at actual cost.
Compute:
a) Materials quantity variance.
b) Materials price variance.
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The company estimates the system's current salvage value to be $1,500. A new computer system will cost $10,000 and is expected to have a useful life of five years, with no salvage value. Annual cash operating costs are $4,000 for the old system an..
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anderwald corporation has provided the following production and average cost data for two levels of monthly production
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