Brunel Ltd employed cheaper quality materials in its production process than originally planned. At the end of the budget period, the business reporte 1. An unfavourable direct materials usage variance 2. An unfavourable direct materials price variance 3. An unfavourable direct labour efficiency variance 4. A favourable sales price variance Which TWO of the above may be explained by the use of cheaper quality materials?

Rodolfo works at Johnson Incorporated and is tasked with measuring costs. When Rodolfo identifies that actual sales are less than expected sales, what type of variance did Rodolfo identify? A Fixed cost volume variance B Sales price variance C Favorable variance D Unfavorable variance

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Describe the difference between a direct materials efficiency variance and a variable manufacturing overhead efficiency variance. OA. A direct materials efficiency variance indicates whether more or less of the chosen allocation base was used than was budgeted for the actual output achieved. A variable manufacturing overhead efficiency variance indicates whether more or less direct materials were used than was budgeted for the actual output achieved. OB. A direct materials efficiency variance indicates whether more or less was paid for direct materials than was budgeted for the actual output achieved. A variable manufacturing overhead efficiency variance indicates whether more or less was paid for the chosen allocation base than was budgeted for the actual output achieved. OC. A direct materials efficiency variance indicates whether more or less direct materials were used than was budgeted for the actual output achieved. A variable manufacturing overhead efficiency variance indicates…

The Provence Company has the following flexible budget variances: unfavorable direct material price variance and favorable direct material quantity variance. A logical explanation for this is: a) They made fewer products than they budgeted for.  b) They purchased cheaper material than budgeted. c) All of these choices are logical explanations.  d) They purchased higher quality material than budgeted.

ty Variance OF Master Budget (19,200 units) 57,600

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