The flexible budget breaks down into the price and quantity variances for direct materials.
Required:
a.List two reasons why actual prices might differ from standard prices, resulting in a direct materials price variance.
b.List two reasons why actual materials usage might differ from standard material usage, resulting in a direct materials quantity variance.

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The Answer of The flexible budget breaks down into the price and quantity variances for direct materials.
Required:
a.List two reasons why actual prices might differ from standard prices, resulting in a direct materials price variance.
b.List two reasons why actual materials usage might differ from standard material usage, resulting in a direct materials quantity variance.

The Flexible Budget Breaks Down into the Price and Quantity