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.

Question

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.

Quizplus · Accepted Answer

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