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In 2003 and 2004, Freddie Mac and Fannie Mae-As the Two

question 88

Multiple Choice

In 2003 and 2004, Freddie Mac and Fannie Mae-as the two government-sponsored mortgage giants are known-were investigated for which of the following?

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Definitions:

Total Direct Materials Cost Variance

The difference between the actual costs of direct materials used in production and the expected (or standard) costs.

Direct Materials Price

The cost of raw materials and components required for the manufacture of a product.

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit.

Direct Materials Price Variance

The difference between the actual cost of direct materials and the expected (or standard) cost, used in manufacturing and budgeting.

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