Exercise 1) At Handy Dandy Refrigeration, the standard price for the Z847 electrical relay (a component used
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Question:
Exercise 1) At Handy Dandy Refrigeration, the standard price for the Z847 electrical relay (a component used in the production of commercial refrigeration unit) is $25. Standards call for 2 relays per unit of finished product. In July, the company purchased 100 relays for $2,600. The company used 83 relays in the production of 40 refrigeration units (three relays were damaged in the installation process). Required: Calculate the material price variance and the material efficiency variance related to the Z847 electrical relay. Indicate whether the variances are favorable or unfavorable.
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