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szehim2009 szehim2009
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A month ago
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.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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moqamoqamoqamoqa
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More solutions for this book are available here
a.The direct materials price variance can be caused by an unexpected increase in the
supplier's price, by the purchase of large volume (bulk), or by the purchase of a different quality of material than called for by the material standard.
b.The materials quantity variances can be caused by workers' experience level, the
quality of materials used in production, a machine malfunction, or employee theft.
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szehim2009 Author
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Brilliant ツ
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Helped a lot
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