Lucy corporation purchased and used 129,000 board feet of lumber in production, at a total cost of $1,548,000. original production had been budgeted for 22,000 units with a standard material quantity of 5.7 board feet per unit and a standard price of $12 per board foot. actual production was 23.500 units the direct materials quantity vanance is a $63,000 favorable b. $59,400 unfavorable c. $63,000 unfavorable d. $59.400 favorable

Varto company has 9,400 units of its sole product in inventory that it produced last year at a cost of $23 each. this year’s model is superior to last year’s, and the 9,400 units cannot be sold at last year’s regular selling price of $42 each. varto has two alternatives for these items: (1) they can be sold to a wholesaler for $8 each, or (2) they can be reworked at a cost of $251,100 and then sold for $34 each. prepare an analysis to determine whether varto should sell the products as is or rework them and then sell them.