Direct materials usage variance can be expressed as:
A) Actual quantity x (standard price - actual quantity)
B) Actual quantity x (standard price x standard quantity)
C) Standard price x (actual quantity x standard quantity)
D) Standard price x (actual quantity - standard quantity)

Question

Quizplus · Accepted Answer

The direct materials usage variance compares the actual quantity of materials used with the standard quantity of materials that should have been used to manufacture the output. The formula to calculate this variance is Standard price x (actual quantity - standard quantity). This formula calculates the difference between the actual quantity of materials used and the standard quantity of materials that should have been used, multiplied by the standard price per unit of material.

Direct Materials Usage Variance Can Be Expressed As