An Unfavorable Materials Quantity Variance Would Occur If

question 130

Multiple Choice

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.

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Definitions:

Overhead Spending Variance

The difference between the actual overhead incurred and the overhead costs that were expected or budgeted.

Variable Overhead Efficiency

The measurement of how effectively a company uses its variable overhead resources in the production process.

Product Costing

The process of determining the total cost associated with producing a product, including direct labor, materials, and overhead.

Service Organisations

Businesses that offer intangible products or services to consumers, relying on expertise or specialized skills rather than the sale of physical goods.