If the materials price variance is favorable but the materials quantity variance is unfavorable is combination of variances may indicate that inferior quality materials were purchased at a discounted price, but the low-quality materials created production problems.
Price and quantity variances move in the same direction. If one is favorable the others will be as well. This is because there is a direct relationship between price and quantity. If one is favorable the other is likely to be favorable and if one is adverse the other is likely to be adverse.
An unfavorable materials quantity variance indicates that: actual usage of material exceeds the standard material allowed for output.
