The materials yield variance will be unfavourable when
A)the flexible-budget contribution margin is greater than the actual contribution margin.
B)the actual direct materials input mix is less expensive than the budgeted direct materials input mix.
C)the input-efficiency variance is favourable.
D)the actual quantity of total inputs used is greater than the flexible budget for total inputs.
E)actual unit sales are less than budgeted unit sales.

Question

Quizplus · Accepted Answer

The materials yield variance measures the difference between the actual quantity of total inputs used and the flexible budget for total inputs. Therefore, if the actual quantity of total inputs used is greater than the flexible budget for total inputs, the materials yield variance will be unfavorable.

The Materials Yield Variance Will Be Unfavourable When