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

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