Question

What does a favorable direct materials cost variance indicate?

A. The actual quantity of direct materials used was greater than the standard quantity.
B. The actual cost of direct materials purchased was greater than the standard cost of direct materials purchased.
C. The actual cost of direct materials purchased was less than the standard cost of direct materials purchased.
D. The actual quantity of direct materials used was less than the standard quantity.

Answer 1

D. The actual quantity of direct materials used was less than the standard quantity.