When Indirect Materials Are Used in Production,the Raw Materials Inventory

question 95

True/False

When indirect materials are used in production,the Raw Materials Inventory account is credited.Process costing is used.

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Definitions:

Materials Quantity Variance

A measure of the difference between the actual quantity of materials used in production and the expected (or standard) quantity, indicating efficiency.

Manufacturing Overhead Controllable Variance

Manufacturing Overhead Controllable Variance is the difference between the budgeted and actual manufacturing overhead costs that management has control over.

Flexible Manufacturing Overhead Budget

A plan that estimates the variable and fixed overhead costs for each level of production activity.

Direct Labor Hour

A measure of the labor directly involved in producing goods or services, expressed in hours.