Question: Budgeting and Variance Analysis for Direct Material Costs : A company prepares a flexible budget for direct material costs based on the following information: Budgeted

Budgeting and Variance Analysis for Direct Material Costs: A company prepares a flexible budget for direct material costs based on the following information:

Budgeted units: 5,000 units

Budgeted material price per unit: $10

During the period, actual units produced were 4,800, and actual material costs incurred were $48,500. Calculate the direct material price variance and direct material quantity variance.

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