Question: What distinction must be made when computing the materials price variance vs. the materials quantity variance that is not an issue with the direct labor

  1. What distinction must be made when computing the materials price variance vs. the materials quantity variance that is not an issue with the direct labor or variable overhead variances? Be sure to state why we bother to differentiate?

  2. What does an unfavorable direct labor efficiency variance mean? Who is held responsible?

  3. What does a favorable direct materials price variance mean? Who is held responsible?

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