When a Journal Entry Is Made to Record the Direct

question 95

Multiple Choice

When a journal entry is made to record the direct materials used, a debit to the Direct Materials Efficiency Variance

• A)indicates the variance is unfavourable.
• B)indicates the variance is favourable.
• C)is the difference between the actual Costs of Goods Sold and the budgeted Materials Control accounts.
• D)is the difference between the debits and credits of all materials related entries.
• E)also requires a debit to the materials control account.

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