The Following Direct Materials Variance Computations Are Incomplete

question 47

Essay

The following direct materials variance computations are incomplete.Fill in the missing values,and identify the direct materials flexible budget variance as favorable or unfavorable.
Direct materials price variance = ($? - $5)x 4,000 pounds = $4,000 U
Direct materials efficiency variance = (? - 3,800 pounds)x $5 = ? U
Direct materials flexible budget variance = $?

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Definitions:

Required Rate of Return

The minimum return an investor expects to achieve from an investment, considering its risk level and alternative opportunities.

Growing Annuity

A series of cash flows that grow at a consistent rate for a finite number of periods.

Cash Flow Growth Rate

The rate at which a company's cash flow from operations grows over a specific time period, indicating financial health and performance.

Required Rate of Return

The minimum yearly return rate that convinces individuals or firms to put their investment into a certain security or project.