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Modern Art, Inc

Question 129

Multiple Choice

Modern Art, Inc., produces handpainted mouse pads. The following budgeted and actual results are for a recent month in which actual production was equal to budgeted production: Which of the following is true? (There may be more than one response.)


A) The materials price variance is favorable.
B) The direct labor rate variance is favorable.
C) The materials quantity variance is unfavorable.
D) The direct labor efficiency variance is unfavorable.

Correct Answer:

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