Chapter 10, Problem 10.5Q

To determine

Concept introduction:

A variance indicates the difference between the standard amount and the actual amount of an item. The variances are used in the budgetary control techniques to evaluate the performance of the business. The variances can be divided into two types; quantity variance and price variance. 

To indicate: the meaning of a situation when the material price variance is favorable but the material quantity variance is unfavorable.