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Maru [420]
3 years ago
6

If the purchasing manager purchased a greater quantity of raw materials than budgeted, but paid the Standard Price (SP), which v

ariance may be affected?A) Materials price varianceB) Materials quantity varianceC) Both of the variances may be affectedD) Neither of the variances may be affected
Business
1 answer:
adelina 88 [10]3 years ago
8 0

Answer:

B) Materials quantity variance

Explanation:

Provided that actual and standard price per raw material is same, therefore the price variance will be 0 as there is no difference.

Also provided that actual quantity is more than budgeted, therefore there will be an impact on material quantity variance.

As Material Quantity Variance = (Standard Quantity - Actual Quantity) \times Standard Price

Since here actual quantity will be more than standard, there will be an unfavorable variance.

Thus correct option is,

B) Materials quantity variance

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