If a company has an unfavorable direct-material quantity variance, then:
A) the direct-material price variance is favorable.
B) the total direct-material variance is unfavorable.
C) the total direct-material variance is favorable.
D) the direct-labor efficiency variance is unfavorable.
E) any of the other answers can occur.

Question

Quizplus · Accepted Answer

An unfavorable direct-material quantity variance indicates that more materials were used than expected, but it does not determine the direct-material price variance or the total direct-material variance, as these depend on other factors.

If a Company Has an Unfavorable Direct-Material Quantity Variance, Then