The materials cost variance report
Response to the following problem:
The materials cost variance report for Nickols Inc. indicates a large favorable materials price variance and a significant unfavorable materials quantity variance. What might have caused these offsetting variances?
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Calculate the four conversion cost variances assuming that variable and fixed costs are separated.
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The materials cost variance report for Nickols Inc. indicates a large favorable materials price variance and a significant unfavorable materials quantity .
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