Asked by
Elijah Joseph
on Nov 13, 2024
Verified
There could be instances where the production department is responsible for a direct materials price variance.
Direct Materials
Raw materials that can be directly traced to a finished product and are a part of the manufacturing process.
Price Variance
The difference between the actual cost of a good or service and its expected cost, often used in budgeting and financial analysis.
- Identify and explain the variances in overhead, labor, and materials costs.
- Recognize the role and responsibility of different departments in variance analysis and standard cost setting.
Verified Answer
MR
Learning Objectives
- Identify and explain the variances in overhead, labor, and materials costs.
- Recognize the role and responsibility of different departments in variance analysis and standard cost setting.
Related questions
A Debit to the Overhead Volume Variance Account Indicates That ...
A Credit to a Materials Quantity Variance Account Indicates That ...
The Labor Time Requirements for Standards May Be Determined by ...
The Final Decision as to What Standard Costs Should Be ...
The Use of an Inexperienced Worker Instead of an Experienced ...