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

Question

Quizplus · Accepted Answer

The quantity variance is the difference between the actual quantity of direct materials used and the standard quantity. This variance is not controllable as it is based on the factors outside of the control of the management. The price variance is the difference between the actual price of direct materials and the standard price. The rate variance is the difference between the actual rate paid for labor and the standard rate. Therefore, the quantity variance is the best choice for this scenario.

If the Actual Quantity of Direct Materials Used in Producing