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 answers can occur.

Question

Quizplus · Accepted Answer

An unfavorable direct-material quantity variance indicates that more materials were used than planned, but it doesn't directly determine the nature of the price variance, total variance, or labor efficiency variance. These other variances depend on their own specific factors.

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