Match each of the following formulas or descriptions with the term (a-e) it defines.
-(Actual Quantity - Standard Quantity) × Standard Price
A)Direct materials price variance
B)Direct labor rate variance
C)Direct labor time variance
D)Direct materials quantity variance
E)Budgeted variable factory overhead

Question

Quizplus · Accepted Answer

The formula (Actual Quantity - Standard Quantity) × Standard Price is used to calculate the Direct Materials Quantity Variance. This variance measures the difference between the actual quantity of materials used in production and the standard quantity that should have been used, multiplied by the standard price of the materials.

Match Each of the Following Formulas or Descriptions with the Term