Question

what is the result when the quantity of materials used is less than the standard quantity? multiple choice an unfavorable materials usage variance a favorable materials price variance an unfavorable materials price variance a favorable materials usage variance

Answer 1

If less material than the standard quantity is used, it results in a favorable materials usage variance, indicating potential efficiency in material usage.

Step-by-step explanation:

The result when the quantity of materials used is less than the standard quantity is a favorable materials usage variance.

The materials usage variance measures the difference between the actual quantity of materials used in production and the standard quantity that should have been used. A favorable variance occurs when the actual quantity used is less than the standard quantity.

For example, if the standard quantity of materials required to produce a product is 100 units, but only 90 units are actually used, the materials usage variance would be favorable.