The calculation of direct materials variances shows an adverse direct materials price variance of £5,000 and a favourable direct materials usage variance of £5,500. Which ONE of the following is the best interpretation of this result? C... OA. The price paid for the material was equal to the budget but the wastage was reduced because of a new training course for staff OB. A higher grade of employee was employed compared with the grade used for the budget, and consequently there was less wastage OC. A machine was faulty, causing damage to the material which resulted in greater wastage O D. The purchasing department bought higher-priced material of better quality, which led to reduced wastage

The calculation of direct materials variances shows an adverse direct materials price variance of £5,000 and a favourable direct materials usage variance of £5,500. Which ONE of the following is the best interpretation of this result? C... OA. The price paid for the material was equal to the budget but the wastage was reduced because of a new training course for staff OB. A higher grade of employee was employed compared with the grade used for the budget, and consequently there was less wastage OC. A machine was faulty, causing damage to the material which resulted in greater wastage O D. The purchasing department bought higher-priced material of better quality, which led to reduced wastage

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Don't provide answers in image format
Need help ASAP! Thanks for the help!
See attached image Required:Calculate Parker Plastic’s direct materials price and quantity variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
Which of the following statements about fixed overhead variances is FALSE? O The budget variance represents the difference between the original budgeted fixed overhead cost and the applied fixed overhead cost during a period. O An unfavorable volume variance means that a firm's production facilities were under-utilized by producing less units of products than budgeted. O The volume variance is a measure of facility utilization. O Fixed overhead variances consist of a budget variance and a volume variance. Ne: Previous
Ma2.
In the last quarter Company X has sourced a higher grade of material for its main product the Gyro. The material is more expensive than the previous material used but it has been found that significantly less of the new material is needed for each unit of the Gyro produced than the previous material. Which variances would you expect to see in the operating statement of company X for the last quarter? A.An adverse material price variance A favourable material usage variance B.A favourable material price variance An adverse material usage variance C.An adverse material price variance An adverse material usage variance D.A favourable material price variance A favourable material usage variance
What is the standard factory overhead rate?
In analyzing company operations, the controller of the Carson Corporation found a $250,000 favorable flexible budget revenue variance. The variance was calculated by comparing the actual results with the flexible budget. This variance can be wholly explained by: (CMA adapted) Multiple Choice О the total flexible budget variance. О the total static budget variance. О changes in unit selling prices. changes in the number of units sold.
a. Determine the sales and variable cost volume variances.
A company has set a new policy of acquiring materials from a second hand auction because it is cheaper than market price. Upon further investigations you have discovered that the materials from the auction are lower than the normal standard. How is the new policy likely to impact on the following variances: Material Usage: Choose... Labour Efficiency: Choose... Fixed overhead expenditure: Variable overhead efficiency: Previous page Choose... Choose... Next page