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The following information is available for Discounted Supplies Inc.and its two divisions,Durable Goods and Nondurable Goods. Fixed costs controllable by
Fixed costs not controlled by
Variable costs:
What is the contribution controllable by the manager of the Durable Goods Division?
Materials Standards
Benchmarks or specifications set for the quality, quantity, and cost of materials used in production to achieve performance and efficiency goals.
Direct Materials Purchases Variance
This term refers to the difference between the actual cost of materials purchased and the expected (standard) cost of materials needed to manufacture the products during a specific period.
Materials Price Variance
The difference between the actual cost of materials and the expected (standard) cost.
Raw Material
The basic material from which a product is made, used in the initial stages of production.
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