Question

An unfavorable materials quantity variance indicates that:_________ a) actual usage of materials is less than the standard material allowed for output. b) actual material price is less than the standard price. c) actual usage of material exceeds the standard material allowed for output.

Answer 1

Answer:

The answer is D.

Explanation:

A material quantity variance is the difference between the actual amount of materials used in the production process and the amount that was budgeted for.

Material quantity variance is unfavorable when direct materials used is more than the one that budgeted for i.e they used more.

Material quantity variance is favorable when direct materials used is less than the one that budgeted for i.e they used less.