Which formula is used to calculate the materials usage variance?
A)(standard price × actual quantity) − (standard price × standard quantity)
B)(standard price × standard quality) − (standard price × actual quantity)
C)(actual price × actual quantity) − (standard price × actual quantity)
D)(actual price × standard quantity) − (actual quantity × standard price)

Question

Quizplus · Accepted Answer

The formula for materials usage variance is (standard price × actual quantity) − (standard price × standard quantity). This calculates the difference between the actual quantity of materials used and the quantity that was expected to be used based on the standard quantity allowed for the actual output, multiplied by the standard price per unit of material.

Which Formula Is Used to Calculate the Materials Usage Variance