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Suppose You Are Investigating Direct Materials Variances

question 135

Essay

Suppose you are investigating direct materials variances.You find that the direct materials price variance is favorable, but the direct materials quantity variance is unfavorable.Assuming that the quantity purchased and used were equal, what circumstances could explain both variances?


Definitions:

Organic Product

A compound or material derived from living organisms or synthesized to resemble a naturally occurring substance.

Major

Describing the most significant or largest component or pathway in a series of compounds or reactions.

Primary Alcohols

Organic compounds that contain a hydroxyl group (-OH) bound to a primary carbon atom, which is connected to only one alkyl group.

Methyl Iodide

A volatile and dense organoiodine compound with the chemical formula CH3I, used as a methylation agent in organic synthesis.

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