Lakewood Inc. uses a standard cost system. Materials standards are 7 components per widget at $8 per

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Lakewood Inc. uses a standard cost system. Materials standards are 7 components per widget at $8 per component. During August, Lakewood Inc. purchased 65,600 components for $521,200, using the components to produce 8,900 widgets.

a. Calculate the direct materials price variance.

b. Calculate the direct materials quantity variance.

Related Book For answer-question

Cost Accounting Foundations and Evolutions

ISBN: 978-1111626822

8th Edition

Authors: Michael R. Kinney, Cecily A. Raiborn

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Posted Date: Jun 29, 2022 02:40 AM

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Lakewood Inc. uses a standard cost system. Materials standards are 7 components per widget at $8 per

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Cost Accounting Foundations and Evolutions

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