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Tuna Company: Compute the direct materials cost variance, including its price and quantity variances...

Please assist in completing the problem attached. Please be thorough when answering the questions, provide comments if needed to clarify your answer.

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(Complete problem found in attachment)

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1.
Direct material
Standard Cost 1,620,000 x 4.00 = 6480,000 less Actual Cost 1,615,000 x 4.10 = Cost Variance (unfavorable) 141,000
Price Variance = Standard Cost @ $4 less Actual Cost @ 4.10 = Price Variance $0.10 (Unfavorable)
Quantity Variance = Standard Quantity 1620,000 less Actual Quantity 1615,000 = Quantity Variance (favorable) 5,000.

2,
Direct Labor
Direct Labor Variance
Standard Cost 270,00 x 14 ...

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