Match the variance with its correct calculation.
-Total Materials Variance
A)Actual Quantity × Actual Price
B)(Actual Hours × Actual Rate) − (Standard Hours × Standard Rate)
C)(Actual Quantity × Actual Price) − (Standard Quantity × Standard Price)
D)(Actual Hours − Standard Hours) × Standard Rate
E)(Actual Price − Standard Price) × Actual Quantity
F)Standard Quantity × Standard Price
G)(Actual Rate − Standard Rate) × Actual Hours
H)(Actual Quantity − Standard Quantity) × Standard Price

Question

Quizplus · Accepted Answer

Total materials variance is calculated by subtracting the standard cost of the actual amount of material used from the actual cost of the amount of material used. This can be represented as (Actual Quantity × Actual Price) − (Standard Quantity × Standard Price).

Answer: B
 The labor rate variance is the difference between the actual labor rate and the standard labor rate, multiplied by the actual hours worked. This can be represented as (Actual Hours × Actual Rate) − (Standard Hours × Standard Rate).

Match the Variance with Its Correct Calculation