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Author Question: Indirect materials are classified as manufacturing overhead. How might indirect materials generate ... (Read 187 times)

am7272

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Question 1

Suppose you are investigating direct materials variances. You find that the direct materials price variance is favorable, but the direct materials quantity variance is unfavorable. Assuming that the quantity purchased and used were equal, what circumstances could explain both variances?

Question 2

Indirect materials are classified as manufacturing overhead. How might indirect materials generate an unfavorable variance that is not related to the efficient use of the variable overhead activity driver?


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Marked as best answer by am7272 on Feb 5, 2023

ad2018

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am7272

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Reply 2 on: Feb 5, 2023
Gracias!


amcvicar

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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