Hanson Inc. has the following material standard to manufacture one unit of product:
1.5 pounds per Unit at $4.00 per pound
Last week, 2,800 pounds of material were purchased at a total cost of $10,920, and 1,700 pounds were used to make 1,000 units. Explain the result with the formula.
Hanson’s material price variance (MPV) for the week was:
Hanson’s material quantity variance (MQV) for the week was:
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