The expected quantity of raw materials to be purchased was 15,000 pounds. Records show the actual quantity purchased was 12,000 pounds. What may have caused this variance? A. If production quantity matched the budget, you probably had some new employees being trained. B. Check if production levels matched the budget. If they did, then perhaps more efficient production processes were in place to reduce usage. C. There may be problems with the production equipment.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 27E: Which of the following is the most likely explanation for an unfavorable materials usage variance...
icon
Related questions
Question
The expected quantity of raw materials to be purchased was 15,000
pounds. Records show the actual quantity purchased was 12,000
pounds. What may have caused this variance?
A. If production quantity matched the budget, you probably had some
new employees being trained.
B. Check if production levels matched the budget. If they did, then
perhaps more efficient production processes were in place to reduce
usage.
C. There may be problems with the production equipment.
Transcribed Image Text:The expected quantity of raw materials to be purchased was 15,000 pounds. Records show the actual quantity purchased was 12,000 pounds. What may have caused this variance? A. If production quantity matched the budget, you probably had some new employees being trained. B. Check if production levels matched the budget. If they did, then perhaps more efficient production processes were in place to reduce usage. C. There may be problems with the production equipment.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Essentials of Business Analytics (MindTap Course …
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning