Dandelion Ltd manufactures a health food known as 'Pickup'. The standard material cost of a packet of
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Dandelion Ltd manufactures a health food known as 'Pickup'. The standard material cost of a packet of Pickup is as follows: 3 litres at $5 per litre. In one month Dandelion Ltd produced 12 000 packets of Pickup using 2.8 litres of material per packet at a total cost of $4.80 per litre.
Required
Calculate the direct material usage and price variances for 12 000 packets of Pickup.
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