A favorable materials quantity variance would occur if:
A) more material is purchased than is used.
B) actual pounds of materials used were less than the standard pounds allowed.
C) actual labor hours used was greater than the standard labor hours allowed.
D)actual pounds of materials used was greater than the standard pounds allowed.

Question

Quizplus · Accepted Answer

A favorable materials quantity variance occurs when the actual amount of materials used is less than the standard amount allowed. This means that the company is being more efficient than expected, which can result in cost savings. Option A is incorrect because purchasing more materials than used would result in an unfavorable variance. Option C is incorrect because it refers to a labor variance, not materials. Option D is incorrect because using more materials than allowed would also result in an unfavorable variance.

A Favorable Materials Quantity Variance Would Occur If