An unfavorable materials quantity variance indicates that: Multiple Choice actual usage of material exceeds the standard material allowed for output. actual material price is less than the standard price. actual material price exceeds standard price. actual usage of materials is less than the standard material allowed for output.

actual usage of material exceeds the standard material allowed for output.

Explanation:

Material quantity variance is defined as a difference between the actual amount of materials used for production and what was expected to be used.

It is a measure of production efficiency of a business. When more quantity above the standard amount is used it indicates the system is inefficient and vice versa.

Unfavourable material variance can be caused by low quality of material, damage while transporting, damage during production, poor training of employees, and incorrect material standard.