One variance often influences another variance.If the direct materials price variance is favorable,then it is possible that this variance will cause ________.
A) the direct materials quantity variance to be unfavorable
B) the direct labor price variance to be unfavorable
C) the direct labor price variance to be favorable
D) the direct materials quantity variance to be favorable

Question

Quizplus · Accepted Answer

When the direct materials price variance is favorable, meaning the actual price of materials is less than the standard or expected price, it can lead to purchasing lower quality materials. This, in turn, might require more materials to be used than planned, potentially causing the direct materials quantity variance to be unfavorable.

One Variance Often Influences Another Variance