PRINCIPLES OF AUDITING & OTHER ASSURANC
PRINCIPLES OF AUDITING & OTHER ASSURANC
21st Edition
ISBN: 9781264007202
Author: WHITTINGTON
Publisher: MCG
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Chapter 6, Problem 30QRA

a.

To determine

Explain the reason behind allocating materiality to individual financial accounts for planning by the auditors.

b.

To determine

Describe the reason for exceeding materiality for planning allocated to individual accounts then overall materiality.

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Standard cost per unit requires 3 pounds of material at $10 per pound. The company produces 6,000 units. During production, 17,800 pounds of material were used, and the actual cost per pound was $9.80. What is the total direct material cost variance?
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