The direct materials usage variance is calculated as:
A)(Standard Price - Actual Price)x Actual Quantity Used
B)(Actual Price - Standard Price)x Standard Quantity Allowed
C)(Standard Quantity Allowed - Actual Quantity Used)x Actual Price
D)(Actual Quantity Used - Standard Quantity Allowed)x Standard Price

Question

Quizplus · Accepted Answer

The direct materials usage variance is calculated as the difference between the actual quantity used and the standard quantity allowed for the actual output, multiplied by the standard price per unit. This measures how efficiently the materials were used.

The Direct Materials Usage Variance Is Calculated As