A favorable direct materials quantity variance indicates which of the following?

Question

Quizplus · Accepted Answer

A favorable direct materials quantity variance occurs when the actual quantity of direct materials used is less than the standard quantity for actual output. This means that less material was used than expected, resulting in cost savings. Choice A describes a favorable direct materials cost variance, while choice B describes an unfavorable direct materials yield variance. Choice D is not a valid option as the standard quantity used for calculating the variance is for budgeted output, not actual output.

A Favorable Direct Materials Quantity Variance Indicates Which of the Following