What type of direct material variances for price and quantity will arise if the actual number of pounds of materials used exceeds standard pounds allowed but actual cost was less than standard cost?

Question

Quizplus · Accepted Answer

When the actual number of pounds of materials used exceeds standard pounds allowed, it creates an unfavorable quantity variance. However, if the actual cost of materials is less than the standard cost, it creates a favorable price variance. Therefore, the direct material variances for price and quantity will be unfavorable and favorable respectively. Option B (Unfavorable Favorable) is the best choice.

What Type of Direct Material Variances for Price and Quantity