Question: Before Sarah makes any changes based on the Budget Performance Report for September, she wants to be sure she understands the results, and has the

Before Sarah makes any changes based on the Budget Performance Report for September, she wants to be sure she understands the results, and has the following questions for you.
Answer the following questions (1) and (2). All questions pertain to the September data.
1. What caused the total cost variance for direct materials?
a. The actual quantity of direct materials per unit was less than the standard quantity.
b. The actual price for direct materials per unit was less than the standard price.
c. The favorable price variance dominated the unfavorable quantity variance, causing the total cost variance for direct materials to be favorable.
d. The unfavorable quantity variance dominated the favorable price variance, causing the total cost variance for direct materials to be unfavorable.
e. A factor other than those listed caused the total cost variance for direct materials.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!