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.

Question

Quizplus · Accepted Answer

A favorable direct materials quantity variance occurs when the actual quantity of direct materials used is less than the standard quantity for actual output. This could be due to efficient usage of materials or a reduction in waste.

A Favorable Direct Materials Quantity Variance Indicates Which of the Following