Use the following performance report for a cost center of the Dry Cat Food Division for the month ended December 31 to answer the questions below.
Using the information provided for Dry Cat Food division.
-What is the direct materials variance between the actual results and the flexible budget?
A)$14 (
B)$14 (
C)$30 (
D)$30 (

Question

Use the following performance report for a cost center of the Dry Cat Food Division for the month ended December 31 to answer the questions below.  
Using the information provided for Dry Cat Food division.
-What is the direct materials variance between the actual results and the flexible budget?
A)$14 (
B)$14 (
C)$30 (
D)$30 (

Quizplus · Accepted Answer

The direct materials variance is the difference between the actual cost of direct materials used and the flexible budget for direct materials. In this case, the actual cost of direct materials used is $14 more than the flexible budget, so the direct materials variance is $14 (U).

Use the Following Performance Report for a Cost Center of the Dry