What is the correct formula for the direct material usage variance?
A) (The direct materials that should have been used in actual production - the actual direct materials used in actual production) x the actual cost for one unit of direct material.
B) Actual expenditure on direct materials used in actual production - expected expenditure on direct materials used in actual production.
C) What the direct materials used in actual production should have cost - what the direct materials used in actual production actually cost.
D) (The direct materials that should have been used in actual production - the actual direct materials used in actual production) x the standard cost for one unit of direct material.

Question

Quizplus · Accepted Answer

The direct material usage variance is calculated by taking the difference between the standard quantity of materials that should have been used for the actual production and the actual quantity used, then multiplying by the standard cost per unit of material.

What Is the Correct Formula for the Direct Material Usage