The algebraic equation for the direct materials quantity variance is
A)direct materials quantity variance = AQused × (AP - SP)
B)direct materials quantity variance = SQused × (AP - SP)
C)direct materials quantity variance = SP × (AQused - SQ)
D)direct materials quantity variance = AP × (AQused - SQ)

Question

Quizplus · Accepted Answer

The direct materials quantity variance is calculated by taking the standard price (SP) and multiplying it by the difference between the actual quantity used (AQused) and the standard quantity (SQ) that should have been used for the actual output.

The Algebraic Equation for the Direct Materials Quantity Variance Is