Which of the following is not a reason for a direct materials quantity variance?
A) Malfunctioning equipment
B) Purchasing of inferior raw materials
C) Increased material cost per unit
D) Spoilage of materials

Question

Quizplus · Accepted Answer

Direct materials quantity variance is caused by the difference between the quantity of materials actually used in production and the standard quantity of materials that should have been used. Increased material cost per unit would result in a price variance, not a quantity variance. Malfunctioning equipment, purchasing of inferior raw materials, and spoilage of materials can all result in direct materials quantity variance.

Which of the Following Is Not a Reason for a Direct