Question

A favorable direct materials quantity variance indicates which of the following?A) The actual cost of direct materials was less than the standard cost of direct materials.B) The Standard Quantity (SQ) of direct materials for actual output was less than the Actual Quantity (AQ) of direct materials used.C) The Actual Quantity (AQ) of direct materials used was less than the standard quantity for actual output.D) The Actual Quantity (AQ) of direct materials used was greater than the standard quantity for budgeted output

Answer 1

Answer: A favorable direct materials quantity variance indicates which of the following? C) The Actual Quantity (AQ) of direct materials used was less than the standard quantity for actual output.

Explanation: The direct materials quantity variance is the difference between the actual quantity at a standard price and the standard cost to make the item. If the materials that were used were less than what was produced, that would be a favorable or good output because money and resources are saved.