The _____ people are the earliest known inhabitants of Africa's Mediterranean coast - 832289
The purchasing department is often responsible for the events that create a direct materials price variance. TRUE ___2. A flexible budget expresses variable costs on a per unit basis and fixed costs on a total basis. TRUE ___3. A flexible budget expresses all costs on a per unit basis. FALSE ___4.
The business expected to make each final product for $200 in direct materials cost by using 10 units of materials at $20 per unit. But it actually spent an extra $5 to purchase every unit of materials and used 12 units for making each final product, resulting in a price differential of $60.Combining the $60 price variance and the $40 quantity variance leads to $100 in additional cost in direct materials.tep 1. Set up a standard costing system for direct materials. A business can initially assume or budget direct materials cost by implementing a standard costing system to estimate the expected purchase price and production usage of direct materials using the best information available.