Answer :
A company had an unfavorable direct materials quantity variance, a possible reason for this variance is that as compared to expectations, the production department worked fewer hours.
The management is focused on areas where corrective action can help control operations by using flexible budget performance reports. A favorable variance, where actual costs are lower than standard costs, is the opposite of an unfavorable variance. An unfavorable variance in manufacturing could be caused by rising direct material costs or ineffective operations within the production facility.
An unfavorable material price variance happens when the actual cost of the materials is higher than the average cost. On the other hand, a favorable material price variance occurs when the actual price paid for the materials is lower than the standard price. When actual revenues fall short of what was anticipated, this is referred to as a negative budget variance.
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