The formula to compute the direct material quantity variance is to calculate the difference between

Question

Quizplus · Accepted Answer

The direct material quantity variance measures the difference between the actual quantity of materials used and the standard quantity of materials that should have been used given the output achieved. The formula to calculate this variance is (Actual quantity × Standard price)- Standard costs. This formula takes into account both the quantity of materials used and the price at which they were purchased (i.e. the standard price). Option A only considers the difference in costs without taking into account the actual quantity of materials used, while option B calculates the difference in standard costs, which is not the same as the direct material quantity variance. Option D uses the standard price and standard cost, but does not take into account the actual quantity of materials used.

The Formula to Compute the Direct Material Quantity Variance Is