The formula to compute the direct materials 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 materials quantity variance is calculated by multiplying the difference between actual quantity and standard quantity by the standard price per unit. The formula is (Actual Quantity × Standard Price) - (Standard Quantity × Standard Price). Simplifying, we get (Actual Quantity × Standard Price) - Standard Costs. Therefore, option C is the correct choice.

The Formula to Compute the Direct Materials Quantity Variance Is