If a price variance for materials is unfavorable, the quantity variance for materials also must be unfavorable.

Question

Quizplus · Accepted Answer

A price variance for materials being unfavorable means that the actual cost of materials was higher than expected, but the quantity variance, which measures the difference between the actual quantity of materials used and the standard quantity expected for the production achieved, can be favorable, unfavorable, or neutral independently of the price variance.

If a Price Variance for Materials Is Unfavorable, the Quantity