The formula to compute direct material quantity variance is:
A) actual costs - standard costs.
B) standard costs - actual costs.
C) (actual quantity × standard price) - standard costs.
D) actual costs - (standard price × standard costs).

Question

Quizplus · Accepted Answer

The direct material quantity variance is calculated as the difference between what the actual quantity of materials used cost at standard prices and what it should have cost, based on the quantity of materials actually used. This formula is represented as (actual quantity x standard price) - (actual quantity x actual price) or (actual quantity x standard price) - actual cost. Option C is the only answer that represents this formula.

The Formula to Compute Direct Material Quantity Variance Is