The direct materials mix variance will be favorable when:
A)the flexible-budget contribution margin is greater than the actual contribution margin
B)the actual direct materials input mix is less expensive than the budgeted direct materials input mix
C)the actual quantity of total inputs used is greater than the flexible budget for total inputs
D)actual unit sales are less than budgeted unit sales

Question

Quizplus · Accepted Answer

The direct materials mix variance measures the difference between the actual mix of inputs used and the budgeted mix of inputs. It calculates the impact of using a different mix of materials on their overall cost. If the actual mix of direct materials input used is less expensive than the budgeted mix, the variance will be favorable.

The Direct Materials Mix Variance Will Be Favorable When