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:

Direct Labor Cost

The total cost of all labor that can be directly attributed to the production or manufacturing of goods or services.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, excluding direct materials and direct labor costs.

Administrative Costs

Expenses related to the general operations of a business that are not directly tied to the production of goods or services.

Direct Material

Raw materials that can be directly traced to the production of a specific product.