When recording direct materials usage, what does an unfavorable direct materials efficiency variance represent? Will this variance have a debit or credit balance?
What will be an ideal response
An unfavorable direct materials efficiency variance means that the actual quantity of direct materials used exceeded the standard quantity of direct materials allowed for the production level achieved. This variance will have a debit balance.
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Indicate whether this statement is true or false.
American Coffee Company and Beans Brokers, Inc, enter into a contract for the sale of a certain quality and quantity of coffee beans, with Beans Brokers to determine the price. The price must be set according to
a. the concept of good faith. b. the principle of fair trade. c. the predominant-factor test. d. the doctrine of unconscionability.