Principles of Managerial Accounting: Week 7

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An unfavorable materials quantity variance indicates that:

Selected: a. actual usage of material exceeds the standard material allowed for output. This answer is correct.
b. standard material allowed for output exceeds the actual usage of material.

c. actual material price exceeds standard price.
d. standard material price exceeds actual price.

Correct! An unfavorable quantity variance means that actual quantity used is higher than the standard planned on.

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