The materials usage variance is calculated by the equation
A) (Standard Price * Actual Quantity) -(Standard Price * Standard Quantity).
B) (Standard Price * Standard Quantity) - (Standard Price * Actual Quantity).
C) (Actual Price * Actual Quantity) - (Standard Price * Actual Quantity).
D) (Actual Price * Standard Quantity) + (Actual Quantity * Standard Price).
E) None of these.

Question

Quizplus · Accepted Answer

The formula for materials usage variance is (Standard Price × Actual Quantity) - (Standard Price × Standard Quantity). The option A represents the formula correctly.

The Materials Usage Variance Is Calculated by the Equation