The use of a spreadsheet for analysis is especially useful when preparing the statement
of cash flows using the _____________ method.
Fairfield Co. has collected the following information about its production activities for
the current year:
Actual costs and quantities:
Direct materials used 95,000 lbs. @ $6.30 per lb.
Units completed during the year, 50,000 units
Standard costs and quantities:
Price per lb. of direct material, $6.05
Two lbs. of direct material per unit
Calculate the direct materials price and quantity variances and indicate whether each is
favorable or unfavorable.