Acc400 Accounting for Decision Making: E24.3 One of the products of Hearts & Flowers

Acc400 Accounting for Decision Making
Exercise 24.3 Computing Materials Cost Variances
One of the products of Hearts & Flowers is a one-pound box of chocolate candy, packaged in a box bearing the customer's logo. (Minimum order, 100 boxes.) The standard cost of the chocolate candy used is $2 per pound. During November, 20,000 of these one-pound boxes were produced, requiring 20,800 pounds of chocolate candy at a total direct materials cost of $42,640.

Determine the materials price variance and quantity variance with respect to the candy used producing this product.
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