What is the correct formula for the direct material total variance?
A) (Actual usage of direct materials for actual production - expected usage of direct materials for actual production) x the standard cost for one unit of direct material.
B) Actual expenditure on direct materials for actual production - expected expenditure on direct materials for actual production.
C) What the direct materials for actual production should have cost - what the direct materials for actual production actually cost.
D) Expected expenditure on materials - (actual production units x standard materials cost per unit of production) .
Correct Answer:
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