Which of the following would be a feasible explanation for an unfavorable direct materials quantity variance?
A)Purchased more materials than specified because the larger quantity resulted in a price discount
B)Purchased a higher-quality material than specified in the standard
C)A machine that was out of alignment caused several units of product to be scrapped
D)Only higher-paid experienced factory workers were assigned to the product

Question

Quizplus · Accepted Answer

An unfavorable direct materials quantity variance can occur when more materials are used than what was specified in the standard due to waste, scrap or inefficiencies during the production process. In this case, a machine that was out of alignment caused several units of the product to be scrapped which resulted in more materials being used and hence an unfavorable direct materials quantity variance. A, B and D would result in a favorable direct materials variance.

Which of the Following Would Be a Feasible Explanation for an Unfavorable