answersLogoWhite

0

A favorable/unfavorable price variance does not effect your quantity variance. The reason you would see a favorable price variance and an unfavorable quantity variance is because you consumed more materials than your standard allows AND the price you paid for those material was less than your standard price. If you paid more than your standard price, you would have experienced an unfavorable variance in both quantity and price.

User Avatar

Wiki User

13y ago

What else can I help you with?

Related Questions

An unfavorable material quantity variance indicates?

actual usage of materials exceeds the standard material allowed for output


What difference between a favorable variance and an unfavorable variance?

Favourable variance is that variance which is good for business while unfavourable variance is bad for business


Is a positive variance always favorable?

A positive variance is not always favorable; it depends on the context. In financial terms, a positive variance in revenue indicates better-than-expected performance, which is favorable. However, a positive variance in expenses could mean costs are higher than budgeted, which is unfavorable. Thus, assessing whether a positive variance is favorable requires understanding the specific metrics and their implications.


What are the causes direct material quantity variance?

what are some of the causes of material quntity variance of favourable amount


How do you calculate total material variance?

Total material variance is calculated by comparing the actual cost of materials used to the standard cost of materials that should have been used for the actual production level. The formula is: Total Material Variance = (Actual Quantity x Actual Price) - (Standard Quantity x Standard Price). This variance can be further broken down into material price variance and material quantity variance for more detailed analysis.


What does a favorable direct materials efficiency variance indicate?

A favorable direct materials efficiency variance indicates that you are using less material in production than was budgeted for.


Favorable materials quanity variance?

In cost accounting, a variance is the difference between what we expected to happen (what we planned for when we created the budget) and what actually happened. If we produce more units from a given quantity of raw material than we expected to produce when we set up the budget, we have a favorable materials quantity variance, because we produced the goods more efficiently than we had planned for. We have used the raw materials with less waste than expected.


What type of variance is excess usage?

Since actual usage of the direct material was greater than the standard allowed, the excess usage is called an unfavorable variance


Causes material quantity variance?

causes of labor rate variances


Causes of direct material quantity variance?

Some causes of direct material quantity variance are poor quality materials, untrained workers, and lack of supervision. Production managers should look at and determine the causes.


What factors causes Budget Variance?

There are 7 variances associated with a budget ( which are generally calculated for controlling purposes) 1- Material Price variance 2- Material Quantity variance 3- Labor rate variance 4- Labor efficiency variance 5- Spending variance 6- Efficiency variance 7- Capacity variance


What are the Causes of direct material quantity variance?

An unfavorable materials quantity variance means excessive use of direct materials. The excessive use of direct materials may be the result of a number of reasons including: inexperienced or untrained workers, lack of motivation, lack of proper supervision, use of outdated machinery, faulty equipment, purchase of unsuitable or substandard materials, and frequent power failures.