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A company has calculated a $10,000 adverse direct material variance by subtracting its flexed budget direct materialcost from its actual direct material cost for the period. Which of the following could have caused the variance? (1) An increase in direct material prices (2) An increase in raw material usage per unit (3) Units produced being greater than budgeted (4) Units sold being greater than budgeted A.2 and 3 only B.3 and 4 only C.1 and 2 only D.1 and 4 only |
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