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30. Mayall Corporation is developing standards for its products. Each unit of output of the product requires 0.92 kilogram of a particular input. The allowance for waste and spoilage is 0.02 kilogram of this input for each unit of output. The allowance for rejects is 0.11 kilogram of this input for each unit of output. The standard quantity in kilograms of this input per unit of output should be:

• a.

0.90

• b.

0.92

• c.

0.79

• D.

1.05

31. The following materials standards have been established for a particular product:

# What is the materials price variance for the month?

• a.

\$6,250 U

• B.

\$4,030 U

• c.

\$8,679 U

• d.

\$6,575 U

Materials price variance = Actual quantity × (Actual price - Standard price) = \$81,530 - (6,200 × \$12.50) = \$81,530 - \$77,500 = \$4,030 unfavorable

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