The direct materials flexible budget variance can be divided into which of the following two variances?
A)Price variance and the rate variance
B)Price variance and the standard variance
C)Price variance and the quantity variance
D)Quantity variance and the efficiency variance

Question

Quizplus · Accepted Answer

The direct materials flexible budget variance can be divided into the price variance and the quantity variance. The price variance measures the difference between the actual price of the materials and the expected or standard price. The quantity variance measures the difference between the actual quantity of materials used and the expected or standard quantity.

The Direct Materials Flexible Budget Variance Can Be Divided into Which