Using more sugar than desired in a recipe, with the actual price equal to standard price, would likely result in
A) A usage variance
B) A price Variance
C) A change in the usage standard
D) A change in the price standard
E) None of the above

Question

Quizplus · Accepted Answer

Using more sugar than desired in a recipe, while the actual price equals the standard price, results in a usage variance because it reflects the difference in the quantity of materials used compared to what was expected or standard. Price variance is related to the difference in cost, which is not the case here since the actual price equals the standard price. Changes in usage or price standards are decisions made by management, not outcomes of using more materials.

Using More Sugar Than Desired in a Recipe, with the Actual