The materials cost variance report
Response to the following problem:
The materials cost variance report for Nickols Inc. indicates a large favorable materials price variance and a significant unfavorable materials quantity variance. What might have caused these offsetting variances?
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Calculate the four conversion cost variances assuming that variable and fixed costs are separated.
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Compute 2009 amortization, 12/31/09 book value, 2010 amortization, and 12/31/10 book value if the company amortizes the trade name over 10 years.
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The materials cost variance report for Nickols Inc. indicates a large favorable materials price variance and a significant unfavorable materials quantity .
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Assume that the purchasing agent for the small motors plant purchased a lower-quality raw material from a new supplier.
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