The difference between the actual quantity and the standard quantity,multiplied by the standard price,is the:
A)direct materials spending variance.
B)direct materials volume variance.
C)direct materials price variance.
D)direct materials quantity variance.

Question

Quizplus · Accepted Answer

The actual quantity of direct materials used compared to the standard quantity allowed for the actual output is known as the direct materials quantity variance. This variance measures the efficiency of using direct materials. It is calculated by multiplying the difference between the actual quantity and standard quantity by the standard price. Therefore, the correct answer is D - Direct materials quantity variance.

The Difference Between the Actual Quantity and the Standard Quantity,multiplied