The materials yield variance will be unfavorable when:
A)the flexible-budget contribution margin is greater than the actual contribution margin
B)the actual direct materials input mix is less expensive than the budgeted direct materials input mix
C)the actual quantity of total inputs used is greater than the flexible budget for total inputs
D)actual unit sales are less than budgeted unit sales

Question

Quizplus · Accepted Answer

The materials yield variance is calculated as the difference between actual and flexible-budget quantities of inputs, multiplied by the budgeted cost per unit of input. If the actual quantity of total inputs used exceeds the flexible budget for total inputs, it means that more materials were used than expected, resulting in a higher cost than the flexible budget. Therefore, the materials yield variance will be unfavorable. The other options are unrelated to the materials yield variance.

The Materials Yield Variance Will Be Unfavorable When