alleryStart learning →Direct materials may show a variance in the quantity used or in the:
AWeight of packaging
BSource of the order
CPrice of materials
DColour of materials
Answer & Solution
Correct answer: C. Price of materials
1. Materials variances split two ways.
2. Variances are computed separately for materials and labour.
3. Direct materials may have a variance in price of materials.
4. They may also have a variance in quantity of materials used.
_Source: OpenStax Principles of Accounting, Volume 2: Managerial Accounting (CC BY-NC-SA 4.0), Ch 8 'Standard Costs and Variances'_
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