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What Is the Correct Formula for the Direct Material Total

Question 49

Multiple Choice

What is the correct formula for the direct material total variance?


A) (Actual usage of direct materials for actual production - expected usage of direct materials for actual production) x the standard cost for one unit of direct material.
B) Actual expenditure on direct materials for actual production - expected expenditure on direct materials for actual production.
C) What the direct materials for actual production should have cost - what the direct materials for actual production actually cost.
D) Expected expenditure on materials - (actual production units x standard materials cost per unit of production) .

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