The difference between actual quantity used and standard quantity multiplied by standard price is the equation for computing the
A) direct labor efficiency variance.
B) direct materials price variance.
C) direct labor rate variance.
D) direct materials quantity variance.

Question

Quizplus · Accepted Answer

The equation of actual quantity used minus standard quantity multiplied by standard price is used to calculate the direct materials quantity variance, which is the difference between the actual quantity of materials used and the standard quantity of materials that were expected to be used, multiplied by the standard price per unit of material.

The Difference Between Actual Quantity Used and Standard Quantity Multiplied