Answer
given,
Standard price = $ 7.50
8,500 chairs were manufactured, using 43,600 yards at a cost of $7.55 per yard.
Price Variance = Actual Quantity x (Actual Rate - Standard Rate)
= 43,600 x (7.55 - 7.50)
= 2180 (U)
Quantity Variance = Standard Rate x (Actual Quantity - Standard Quantity)
= 7.5 x (43600 - 8500 x 5)
= 8250 (U)
Cost Variance = 2180+ 8250 = 10430 (U)
