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Adler Industries uses a standard cost system in which direct material is carried at standard cost. ...

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Adler Industries uses a standard cost system in which direct material is carried at standard cost. ...

Adler Industries uses a standard cost system in which direct material is carried at standard cost. Adler has established the following standards for one unit of product: standard quantity of 8 pounds, standard price $1.80 per pound. During January, Adler purchased 160,000 pounds of direct material at a cost of $304,000 and used 142,500 pounds in production of 18,700 units.

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Calculate the direct materials price variance and indicate whether the variance is favorable or unfavorable.

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Managerial Accounting

Edition: 4^th

Author: Davis

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