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what are the causes of direct material usage variances?

what are the causes of direct material usage variances?

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Answer #1

Direct material usage variance can be due to excess consumption of direct material quantity as compared to Standard quantity for required production & that will be Unfavorable Variance.

On the other hand, if the actual consumption of direct material quantity is less than the Standard quantity for required production in that case the direct material usage variance will be Favorable Variance.

The production manager is reponsible for direct material usage variance.

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