Question

When standard quantity exceeds actual quantity, the result is

a. an unfavorable direct materials quantity variance.
b. a favorable direct materials price variance.
c. an unfavorable direct materials price variance.
d. a favorable direct materials quantity variance?

Answer 1

A.

Whenever the predetermined target is not met, the difference between the actual and planned target is called the variance, and if it is not met, then it would be unfavorable.