General Studies · Variance Analysis
A company has calculated a $10,000 adverse direct material variance by subtracting its flexed budget direct material cost from its actual direct material cost for the period. Which of the following combinations could have caused this total variance?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1An increase in direct material prices and an increase in raw material usage per unit✓
- 2An increase in direct material prices and an increase in units produced being greater than budgeted
- 3An increase in raw material usage per unit and an increase in units sold being greater than budgeted
- 4Units produced being greater than budgeted and units sold being greater than budgeted
Correct answer
An increase in direct material prices and an increase in raw material usage per unit
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for General Studies?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Variance Analysis MCQs →Want more practice questions on Variance Analysis?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in General Studies · Variance Analysis