Question

Which of the following would produce an unfavorable materials quantity variance?

a.)poor quality raw materials that cause defective production and lower yields;
b.)an unfavorable variable overhead spending variance.
c.)use of persons with high hourly wage rates in tasks that call for low hourly wage rates;
d.) excessive number of hours worked in completing a job;

Answer 1

Answer

Correct answer is:

a.) poor quality raw materials that cause defective production and lower yields.

Explanation:

Poor quality raw material will lead to usage of higher quantity of raw material than standard and will lead to unfavorable quantity variance.

Unfavorable variable overhead spending variance would not directly impact and produce an unfavorable material quantity variance.

Use of persons with high hourly wage rates in tasks that call for low hourly wage rates may lead to Unfavorable labor rate variance and favorable labor efficiency variance.

Excessive number of hours worked in completing a job will impact labor variances.