If the Standard Quantity Allowed (SQA)for direct materials is greater than the Actual Quantity (AQ)used, the quantity variance is unfavorable.

Question

Quizplus · Accepted Answer

If the SQA is greater than the AQ used, it means less materials were used than planned, resulting in a favorable quantity variance. If the AQ used is greater than the SQA, it means more materials were used than planned, resulting in an unfavorable quantity variance.

If the Standard Quantity Allowed (SQA)for Direct Materials Is Greater