Question Details

A favorable direct materials price variance 



1. The purchasing department is often responsible for the price paid for materials that may create a direct
materials price variance.
True False
2. A direct labor cost variance may be broken down into a controllable variance and a volume variance.
True False
3. When the actual cost of direct materials used exceeds the standard cost, the company must have
experienced an unfavorable direct materials price variance.
True False
4. A favorable direct materials price variance might lead to an unfavorable direct materials quantity variance
because the company purchased inferior materials.
True False
5. One possible explanation for direct labor rate and efficiency variances is the use of workers with different
skill levels.
True False




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