Which Variance Is Directly Impacted If a Worker Drops the Raw

question 31

Multiple Choice

Which variance is directly impacted if a worker drops the raw material during production and the raw material must be discarded?

• A)Direct materials quantity variance
• B)Direct materials price variance
• C)Direct labor rate variance
• D)Direct labor efficiency variance

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Definitions:

Market Value

The current quoted price at which an asset or service can be bought or sold in a marketplace.