Which one of the following, for each direct material used in production, is defined as the difference between the actual units of material used and the total standard units of the direct material that should have been used for the units of the product manufactured during the period, multiplied by the standard unit price of the direct material?
A) Direct materials sales-volume variance.
B) Direct materials rate variance.
C) Direct materials usage variance.
D) Direct materials flexible-budget variance.
E) Direct materials mix variance.

Question

Quizplus · Accepted Answer

The direct materials usage variance is the difference between the actual amount of direct material used and the standard amount that should have been used, multiplied by the standard price for each unit of the direct material. It measures the efficiency of the production process in using direct materials.

Which One of the Following, for Each Direct Material Used