Question

A favorable materials quantity variance would occur if?

1) Actual quantity used is less than the standard quantity allowed
2) Actual quantity used is greater than the standard quantity allowed
3) Actual quantity used is equal to the standard quantity allowed
4) Cannot be determined

Answer 1

A favorable materials quantity variance occurs when the actual quantity used is less than the standard quantity allowed. Option 2

Step-by-step explanation:

A favorable materials quantity variance would occur if the actual quantity used is less than the standard quantity allowed. The materials quantity variance measures the difference between the actual quantity of materials used and the standard quantity allowed for a particular production or manufacturing process.

If the actual quantity used is less than the standard quantity allowed, it suggests that less material was used than what was initially planned or expected. This can result in cost savings and is generally considered favorable. Option 2