What Does a Favourable Direct Materials Efficiency Variance Indicate

question 139

Multiple Choice

What does a favourable direct materials efficiency variance indicate?

• A) The actual cost of direct materials was less than the standard cost of direct materials.
• B) The actual quantity of direct materials used was less than the standard quantity for actual output.
• C) The standard quantity of direct materials for actual output was less than the actual quantity of direct materials used.
• D) The actual quantity of direct materials used was greater than the standard quantity for budgeted output.

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