A particular firm with zero material inventory purchased 30,000 kg of material and used 25,000 kg. For control purposes, it is recommended that firms calculate the material price variance at the time of purchase. The variance could alternatively be calculated at the time of usage of that material. Which of the following statements most correctly reflects a comparison of the two methods for this firm? Group of answer choicesThe variance calculated on purchase will be larger than the variance calculated on usage, but in the same direction (which is either favourable or unfavourable).Whether calculated on purchase or usage, both variances will be unfavourable.The variance calculated on purchase will be smaller than the variance calculated on usage, but in the same direction (which is either favourable or unfavourable).Whether calculated on purchase or usage, both variances will be favourable.None of the given answers

Which of the following statements is true?The materials price variance is computed based on the amount of materials purchased during the period.The standard price per unit for direct materials should reflect the final, delivered cost of the materials.In general, the production manager is responsible for the materials price variance.An unfavorable materials quantity variance occurs when the actual quantity used in production is less than the standard quantity allowed for the actual output of the period.Multiple ChoiceBoth statements 1one and 2 are true.Both statements 2 and 3 are true.All of the statements are true.None of the statements are true.

Which of the following statements is true?Multiple choice question.Quantity variances are computed for direct materials, direct labor and fixed overhead.The variance that computes the price difference for materials is called a material rate variance.Price variances can only be computed for direct materials and direct labor.A labor efficiency variance is a quantity variance.

The materials price variance is the difference between the actual price of materials Blank______.Multiple choice question.times the actual quantity of materials and the standard price of materials times the standard quantity allowed for productionand the standard price for materials with the difference multiplied by the standard quantity of material allowedand the standard price for materials with the difference multiplied by the actual quantity of materials

Most companies compute the material price variance when materials are Blank______ and the material quantity variance when materials are

Multiple Choice QuestionIdentify a true statement about the raw materials purchase price variance.Multiple choice question.The formula to calculate raw materials purchase price variance reads Actual quantity allowed − Actual quantity purchased.It is the variance that is calculated and reported at the time materials are purchased rather than when they are used.The formula to calculate raw materials purchase price variance reads Standard quantity allowed − Actual quantity purchased.It is the variance that results because of the difference between actual cost and standard cost of raw materials used.