The general model for calculating a quantity variance is:
A) actual quantity of inputs used x (actual price - standard price).
B) standard price x (actual quantity of inputs used - standard quantity allowed for output).
C) (actual quantity of inputs used at actual price) - (standard quantity allowed for output at standard price).
D) actual price x (actual quantity of inputs used - standard quantity allowed for output).

Question

Quizplus · Accepted Answer

The general formula for quantity variance is the difference between actual and standard quantity of inputs used, multiplied by the standard price. Thus, option B provides the correct formula for calculating quantity variance. Option A is incorrect as it uses actual and standard price, but not the actual and standard quantities. Option C is incorrect as it uses actual price and quantity, but not the standard quantity. Option D is incorrect as it multiplies actual price by the difference in quantities, but does not use the standard price.

The General Model for Calculating a Quantity Variance Is