List the direct materials variances, and briefly describe each.
What will be an ideal response?
The direct materials variances are the direct materials cost variance and the direct materials efficiency variance.
The direct materials cost variance measures how well the company keeps the actual direct materials cost per unit within standard. A direct materials cost variance is favorable (unfavorable) if the actual direct materials cost per unit is less (greater) than the standard direct materials cost per unit.
The direct materials efficiency variance measures how well the company keeps the actual usage of direct materials within standard. A direct materials efficiency variance is favorable (unfavorable) if the total quantity of direct materials actually used is less (greater) than the total allowed to manufacture the actual total quantity of units.
You might also like to view...
Which of the following is not an issue to be addressed in a business code of ethics required by the SEC?
a. Conflicts of interest b. Full and Fair Disclosures c. Legal Compliance d. Internal Reporting of Code Violations e. All of the above are issues to be addressed
On a microeconomic pricing theory graph, the total revenue line and the total cost line cross
A) once. B) twice. C) three times. D) four times.
Which of the following is part of the product element of the marketing mix?
A) a quality discount B) a store coupon C) a newspaper advertisement D) the packaging E) publicity releases
The formula for the expected duration of an activity under these circumstances is ______.
a. (a + 4m + b)/6 b. (a + 2m + b)/6 c. (a + 4m + b)/3 d. (a + 2m + b)/3