If a company has a favorable materials quantity variance of $3,300,the journal entry to record the use of direct materials in production along with this related quantity variance would include:
A)a credit to Materials Quantity Variance.
B)a credit to Materials Price Variance.
C)a debit to Materials Quantity Variance.
D)a debit to Materials Price Variance.
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

A favorable materials quantity variance indicates that the actual quantity of materials used was less than the standard quantity expected for the production achieved. This results in a credit to the Materials Quantity Variance account to reflect the cost savings.

If a Company Has a Favorable Materials Quantity Variance of $3,300,the