The general model for calculating a quantity variance is:
A) Actual quantity of inputs used × (Actual price − Standard price).
B) Standard price × (Actual quantity of inputs used − Standard quantity allowed for output).
C) (Actual quantity of inputs used × Actual price) − (Standard quantity allowed for output × Standard price).
D) Actual price × (Actual quantity of inputs used − Standard quantity allowed for output).

Question

Quizplus · Accepted Answer

This is the correct formula for calculating quantity variance, which measures the difference between the actual quantity of inputs used and the standard quantity allowed for output, multiplied by the standard price.

The General Model for Calculating a Quantity Variance Is