Calculate the direct materials price and quantity variances


Response to the following problem:

SITO Elevator Company manufactures small hydroelectric elevators with a maximum capacity of ten passengers. One of the direct materials used is heavy duty carpeting for the floor of the elevator. The direct materials quantity standard for April was 8 square yards per elevator. During April, the purchasing agent purchased this carpeting at $11 per square yard; the standard price for the period was $12. Ninety elevators were completed and sold during the month; the Production Department used an average of 8.5 square yards of carper per elevator.

Calculate the company's direct materials price and quantity variances for carpeting for April.

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Cost Accounting: Calculate the direct materials price and quantity variances
Reference No:- TGS02075692

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