(Solved by Humans)-ZZ Tire Company has gotten an order for its manufacturing business segment of 30,000 tires. Below is
Question
ZZ Tire Company has gotten an order for its manufacturing business segment of 30,000 tires. Below is the standard cost and quantity of materials needed to make one tire. Rubber in one tire: 8 pounds of rubber Cost per pound of rubber: $1.50 Steel used in tire: 2 pounds of steel Cost per pound of steel: $2.50 After some time, the price or rubber has gone up to $1.75 a pound, and the price of steel has dropped to $2.00 a pound. Find out the direct materials price variance.
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