Expenses often turn out different than amount budgeted. Three key types of expen

Question

Expenses often turn out different than amount budgeted. Three key types of expense variances combine to equal the total variance are all if following except a) price or rate variance b) quantity or use variance c) mix variance or d) volume variance Expenses often turn out different than amount budgeted. Three key types of expense variances combine to equal the total variance are all if following except a) price or rate variance b) quantity or use variance c) mix variance or d) volume variance a) price or rate variance b) quantity or use variance c) mix variance or d) volume variance

Explanation / Answer

c) mix variance

Total direct material cost variance = Material price variance + Material usage variance

Total direct labor cost variance = Labor rate variance + Labor volume variance

Total variable overhead cost variance = Variable Overhead rate variance + Variable overhead volume variance

The mix variance is only in case of direct material, It is the sub-classification of material usage variance

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