Which one of the following is the difference in direct material costs between the actual cost incurred during the period and the total standard cost in the flexible budget for the units manufactured during the period?
A) Direct materials price variance.
B) Direct materials mix variance.
C) Direct materials usage variance.
D) Direct materials flexible-budget variance.
E) Direct materials efficiency variance.

Question

Quizplus · Accepted Answer

The direct materials flexible-budget variance shows the difference between the actual cost for direct materials incurred during the period and the total standard cost for direct materials in the flexible budget for the units produced during the period. It takes into account any changes in the quantity of direct materials used and the prices paid for those materials. Thus, it covers both price variances and usage variances. Therefore, the direct materials flexible-budget variance is the correct answer.

Which One of the Following Is the Difference in Direct