Question
15,Materials Price Var.$2,000 Unf.Variable Overhead Spend.Var.$1,800Fav. Materials Quantity Var. $6,000 Fav.Variable Overhead Effic. Var.$2,500Fav. Labor Rate Variance$1,500 Unf.Fixed Overhead Budget Var.$1,000 Unf. Labor Efficiency Var.$4,000
15,Materials Price Var.$2,000 Unf.Variable Overhead Spend.Var.$1,800Fav.
Materials Quantity Var. $6,000 Fav.Variable Overhead Effic. Var.$2,500Fav.
Labor Rate Variance$1,500 Unf.Fixed Overhead Budget Var.$1,000 Unf.
Labor Efficiency Var.$4,000 Fav.Fixed Overhead Volume Var.$5,000 Fav.
If the purchasing manager bought lower quality materials than specified in the company's standards, this could explain both the Materials Price Variance and the Materials Quantity Variance.
Group of answer choices
True
False
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
13th edition
978-1-119-4110, 1119411483, 9781119411017, 978-1119411482
