What does a favorable direct materials efficiency variance indicate?
A) The actual cost of direct materials was less than the standard cost of direct materials.
B) The actual quantity of direct materials used was less than the standard quantity for actual output.
C) The standard quantity of direct materials for actual output was less than the actual quantity of direct materials used.
D) The actual quantity of direct materials used was greater than the standard quantity for budgeted output.
Correct Answer:
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