The formula for calculating an input price variance is:
A)(Actual volume less budgeted volume) x actual price.
B)(Budgeted volume less actual volume) x budgeted price.
C)(Budgeted price less actual price) x actual volume.
D)(Actual price less budgeted price) x budgeted volume,

Question

Quizplus · Accepted Answer

The input price variance is the difference between the budgeted price and the actual price of inputs used multiplied by the actual volume, as opposed to the budgeted volume. This formula allows for the calculation of the variance in cost due to the difference in price, rather than the difference in volume.

The Formula for Calculating an Input Price Variance Is