Asked by Whian Bester on Jun 05, 2024
Verified
An unfavorable materials quantity variance would occur if
A) more materials were purchased than were used.
B) actual pounds of materials used were less than the standard pounds allowed.
C) actual labor hours used were greater than the standard labor hours allowed.
D) actual pounds of materials used were greater than the standard pounds allowed.
Materials Quantity Variance
The difference between the actual quantity of materials used in production and the standard expected quantity, multiplied by the standard cost per unit.
Standard Pounds
A measurement unit used to standardize or reference weight in the production or processing of materials.
- Spot and analyze variances in direct materials (for quantity and rate) and direct labor (concerning efficiency and pay levels).
Verified Answer
MC
Madison CollierJun 07, 2024
Final Answer :
D
Explanation :
An unfavorable materials quantity variance occurs when actual pounds of materials used exceed the standard pounds allowed. This means that more materials were used than had been planned, leading to higher costs than expected. Option A is incorrect because purchasing additional materials does not directly contribute to an unfavorable materials quantity variance. Option B describes a favorable materials quantity variance, as fewer actual pounds of materials were used than the standard pounds allowed, resulting in cost savings. Option C describes a labor efficiency variance, which is not related to the materials quantity variance.
Learning Objectives
- Spot and analyze variances in direct materials (for quantity and rate) and direct labor (concerning efficiency and pay levels).