The formula to compute direct material quantity variance is to calculate the difference between
A) actual costs - standard costs
B) standard costs - actual costs
C) (actual quantity * standard price) - standard costs
D) actual costs - (standard price * standard costs)

Question

Quizplus · Accepted Answer

Direct material quantity variance is calculated by finding 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. Therefore, option C [(actual quantity * standard price) - standard costs] is the correct formula to compute direct material quantity variance.

The Formula to Compute Direct Material Quantity Variance Is to Calculate