The usage variance is the difference between the actual and standard quantity of inputs
A) multiplied by the standard unit price of the input.
B) budgeted multiplied by the standard unit price of the input.
C) multiplied by the actual unit price of the input.
D) purchased multiplied by the actual unit price of the input.
E) None of these.

Question

Quizplus · Accepted Answer

The usage variance is calculated as the difference between the actual quantity of inputs used and the standard quantity expected to be used, multiplied by the standard unit price of the input. This measures how efficiently the inputs are used relative to the standard set.

The Usage Variance Is the Difference Between the Actual and Standard