alleryStart learning →Using 10 kilograms of material where the standard allowed 8 produces which variance?
AUnfavorable quantity
BFavorable quantity
CUnfavorable price
DFavorable price
Answer & Solution
Correct answer: A. Unfavorable quantity
1. Identify which component moved, and in which direction.
2. A materials variance has a price component and a quantity component.
3. Here the amount used differs from the standard, not the price.
4. An unfavorable variance involves using more than the standard.
5. Ten kilograms against a standard of eight is more, so the quantity variance is unfavorable.
_Source: OpenStax Principles of Accounting, Volume 2: Managerial Accounting (CC BY-NC-SA 4.0), Ch 8 'Standard Costs and Variances'_
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