If the actual quantity of direct materials used in producing a commodity differs from the standard quantity,the variance is termed:
A)controllable variance.
B)price variance.
C)quantity variance.
D)rate variance.

Question

Quizplus · Accepted Answer

The variance that arises due to the difference between actual direct materials usage and the standard quantity is called the quantity variance. This variance is calculated by comparing the standard quantity of direct materials that should have been used to the actual quantity of direct materials used. The quantity variance can be favorable or unfavorable depending on whether the actual usage is less than or greater than the standard usage. The controllable variance relates to the difference between actual and budgeted costs that are within the control of the manager responsible for that particular cost center. The price variance relates to the difference between the actual cost of materials and the standard cost of materials. The rate variance relates to the difference between the actual hourly rate paid and the standard hourly rate that was expected to be paid to the workers.

If the Actual Quantity of Direct Materials Used in Producing