Question:
Turlock Tube, Inc., manufactures metal tubing. The standard materials usage for each unit is 0.5 pounds. The standard cost of metal is $4 per pound. Actual results for September follow:
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Production
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100,000 units
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Materials used
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52,000 pounds
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Materials purchased (67,000 pounds)
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$261,300
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Compute the material purchase price variance and the material efficiency variance for September.