When spending is lower than expected for direct materials, the amount by which spending is less than planned is called an unfavorable direct-material variance (U).

Question

Quizplus · Accepted Answer

When spending is lower than expected for direct materials, the amount by which spending is less than planned is called a favorable direct-material variance, not unfavorable. Unfavorable variances occur when costs are higher than expected.

When Spending Is Lower Than Expected for Direct Materials, the Amount