Which of the following compares actual inputs at standard prices with standard quantity of inputs at standard prices?

Question

Quizplus · Accepted Answer

Usage variance compares actual inputs used with the standard quantity of inputs that should have been used to produce a given output at standard prices. Price variance compares the actual price of inputs with the standard price of inputs, while rate variance compares the actual price paid for labor with the standard price paid for labor. None of these compare actual inputs at standard prices with standard quantity of inputs at standard prices, which is the definition of usage variance.

Which of the Following Compares Actual Inputs at Standard Prices