Question

Which of the following would cause a favorable direct materials quantity variance? None of these are...

Which of the following would cause a favorable direct materials quantity variance?

  1. None of these are correct
  2. More than one of these choices are correct
  3. Using more highly skilled workers
  4. Receiving discounts for purchasing larger than normal quantities of raw materials
  5. Using poorly maintained machinery
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Homework Answers

Answer #1

Answer- The answer to this question is option (c) Using more highly skilled workers.

The reason is, Favorable Direct Material Quantity Variance means less actual quantity is used in comparison to standard quantity.

Option D is incorrect because here purchase doesn't matter, because direct material quantity variance depends upon production rather than raw material purchase.

Option E is incorrect because Using poorly mantained machinery will not result in less usage of goods.

So only option (C) is correct.

Kindly comment in case of any concerns/doubts. Happy to help.

Thank You, Stay Safe.

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