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If a company has an unfavorable direct-material quantity variance, then any other above variance can occur.
The above judgment was made for the reason that variances are independent of direct material quantity variance and that all calculations are different. Because the total variance may be favorable or unfavorable, we also know that the total direct material variation is the sum of the material quantity and price variance. Direct labor efficiency variance in option (d) does not relate to material variance.
What is unfavorable materials quantity variance?
Excessive usage of direct materials is indicated by a negative materials quantity variance. There are a variety of causes for the excessive use of direct materials, some of which include: purchase of inferior or inappropriate materials. recurring electricity outages (wastage may occur due to unscheduled stop and start of machinery and equipment)
Who is responsible for the direct materials price variance?
The production manager is in charge of monitoring excessive material usage. However, the purchasing department would be held accountable for the variation if the purchase manager made low-quality purchases to reduce the direct materials price disparity.
Learn more about material quality variance in:
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