Explaining unfavourable materials quantity variance


1) Unfavourable materials quantity variance would happen if

 

a) More materials are bought than are used.

 

b) Actual pounds of materials used were less than standard pounds allowed.

 

c) Actual labor hours used were greater than standard labor hours allowed.

 

d) Actual pounds of materials used were greater than the standard pounds allowed

 

2) Make-In-It Corp. has unfavourable labour quantity variance. Which statement is not true?

 

a) Unfavourable labour quantity variance is generally not related to material price variance, but it could be if \ company buys poor quality material.

 

b) Unfavourable labour quantity variance could be caused by using inexperienced workers.

 

c) Unfavourable variance means someone, somewhere, is performing poorly.

 

d) Unfavourable labour quantity variance means more time was needed than standard allows.

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Accounting Basics: Explaining unfavourable materials quantity variance
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