The direct materials quantity variance is part of the direct materials flexible budget variance that is caused by
A)using more or less material than the standard quantity allowed for actual production.
B)using more or less material than the standard quantity allowed for budgeted production.
C)purchasing more inventory than used.
D)paying more or less than the standard cost per unit for direct materials.

Question

Quizplus · Accepted Answer

The direct materials quantity variance is caused by using more or less material than the standard quantity allowed for actual production. This means that the actual amount of material used differs from the standard amount of material that should have been used for the actual production output. The direct materials flexible budget variance includes both the direct materials price variance and the direct materials quantity variance.

The Direct Materials Quantity Variance Is Part of the Direct