An unfavorable materials quantity variance indicates that:
A) actual usage of material exceeds the standard material allowed for output.
B) standard material allowed for output exceeds the actual usage of material.
C) actual material price exceeds standard price.
D) standard material price exceeds actual price.

Question

Quizplus · Accepted Answer

An unfavorable materials quantity variance occurs when actual usage of material exceeds the standard amount allowed for output. This means that more material was used than expected, resulting in higher costs and a negative impact on profitability.

An Unfavorable Materials Quantity Variance Indicates That