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Material usage variance
Difference among standard quantity of material and actual quantity used is the material usage variance. This variance arises due to:
Economic use of materials
Use of substitutes
Higher/less wastage of materials
Changes in designs or specification of product
differentiate between multiple product, selling product and margin managent
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how to journalize entry. purchased $150,000 of raw materials on account, terms of 2/20; n/30
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