The direct materials mix variance is the
A)average of the direct materials mix variances for each input.
B)sum of the direct materials mix variances for each input.
C)difference between the direct materials mix variances for each input.
D)multiple of the direct materials mix variances for each input.
E)lesser of the direct materials yield variance and the direct materials efficiency variance.

Question

Quizplus · Accepted Answer

The direct materials mix variance is calculated as the sum of the individual mix variances for each input. Each input has its own mix variance based on the difference between the actual mix of the input and the standard mix. Therefore, the best choice is B as it correctly states that the direct materials mix variance is the sum of these individual variances.

The Direct Materials Mix Variance Is the