1 Diamond Company produces a single product. The company has set the following standards for materials and labor:

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Diamond Company produces a single product. The company has set the following standards for materials and labor:

Standard quantity or hours per unit Standard price or rate

During the past month, the company purchased 7,000 pounds of direct materials at a cost of $17,500. All of this material was used in the production of 1,300 units of product. Direct labor cost totaled $36,750 for the month. The following variances have been computed:

Materials quantity variance……………….

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Standard quantity or hours