A favorable direct materials quantity variance indicates which of the following?

A.

The Actual Quantity (AQ) of direct materials used was less than the standard quantity for actual output.

B.

The Standard Quantity (SQ) of direct materials for actual output was less than the Actual Quantity (AQ) of direct materials used.

C.

The actual cost of direct materials was less than the standard cost of direct materials.

D.

The Actual Quantity (AQ) of direct materials used was greater than the standard quantity for budgeted output.