Lukey Products Has an Unfavourable Materials Usage Variance

question 59

Multiple Choice

Lukey Products has an unfavourable materials usage variance.Which of the following would be the most likely reason for this variance?

• A) The company underbudgeted the quantity of material to be used for each unit.
• B) The company purchased material at a price for less than what was expected.
• C) The company budgeted for a lower sales volume than what actually occurred.
• D) The company did not use up all the material that had been purchased.

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Definitions:

Management

A process designed to achieve an organization's objectives by using its resources effectively and efficiently in a changing environment.