If more direct materials were used than expected at standard:
A) The direct materials efficiency variance would be favourable
B) The direct labour efficiency variance would be unfavourable
C) The direct materials price variance would be favourable
D) The direct materials efficiency variance would be unfavourable

Question

Quizplus · Accepted Answer

The direct materials efficiency variance compares the actual quantity of direct materials used to produce a unit of output to the standard quantity of direct materials that should have been used to produce that same output. If more direct materials were used than expected at standard, the actual quantity would exceed the standard quantity, resulting in an unfavorable efficiency variance.

If More Direct Materials Were Used Than Expected at Standard