Christian Company reported a flexible budget variance for direct materials costs of $10,000 Favorable for the current year.If the direct materials price variance was $2,000 Favorable,what was the direct materials quantity variance?
A) $8,000 Unfavorable
B) $8,000 Favorable
C) $12,000 Favorable
D) $12,000 Unfavorable

Question

Quizplus · Accepted Answer

The direct materials quantity variance can be calculated by subtracting the direct materials price variance from the total flexible budget variance for direct materials. Since the total variance is $10,000 Favorable and the price variance is $2,000 Favorable, the quantity variance is $10,000 - $2,000 = $8,000 Favorable.

Christian Company Reported a Flexible Budget Variance for Direct Materials