Eagle Company had a favorable flexible?budget direct?material variance.In this case, it would not be possible for the direct?material price and quantity variances, respectively, to be _____.
A)favorable and unfavorable
B)unfavorable and favorable
C)unfavorable and unfavorable
D)favorable and favorable

Question

Quizplus · Accepted Answer

A favorable flexible budget direct material variance means that the total direct material variance is favorable, which is the combination of price and quantity variances. It is possible for one to be favorable and the other to be unfavorable, or both to be favorable, but not both to be unfavorable, as this would not result in an overall favorable variance.

Eagle Company Had a Favorable Flexible?budget Direct?material Variance