Question: Assume when you calculated direct material price variance, you found that actual costs of direct material used is greater than the material budgeted costs based

Assume when you calculated direct material price variance, you found that actual costs of direct material used is greater than the material budgeted costs based on actual units purchased and used. In this case the material price variance is:

a. Favorable

b. Unfavorable

c. Significant

d. Positive

Given:

Actual labor costs: $200.00

Flexible budget allowed for actual units used: $180.00

based on budgeted units: $189.00

Labor rate variance is:

a. $20 Favorable

b. $20 Unfavorable

c. $9 Favorable

d. $9 Unfavorable

e. $11 Favorable

f. $11 Unfavorable

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