Suppose you are investigating direct materials variances.You find that the direct materials price variance is favorable, but the direct materials quantity variance is unfavorable.Assuming that the quantity purchased and used were equal, what circumstances could explain both variances?
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q179: Nantucket, Inc.uses a standard cost system with
Q180: Nantucket, Inc.uses a standard cost system in
Q181: Because fixed overhead does not vary with
Q182: The flexible budget breaks down into the
Q183: R&N Sports has budgeted $57,000 for fixed
Q185: Chillcott Manufacturing produces ceiling fans.A master budget
Q186: The following standards for variable manufacturing overhead
Q187: Hunter Company produces personalized towel wraps.During May,
Q188: The flexible budget breaks down into the
Q189: Indirect materials are classified as manufacturing overhead.How
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents