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What Is the Correct Formula for the Direct Material Total

Question 7

Multiple Choice

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) .

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