The actual quantity of input at the standard price less than the standard quantity of input at the actual price equals the usage variance.

Question

Quizplus · Accepted Answer

The actual quantity of input at the standard price less than the standard quantity of input at the actual price equals the price variance, not the usage variance. The usage variance is determined by the difference between the standard quantity of input and the actual quantity of input used, multiplied by the standard price per unit.

The Actual Quantity of Input at the Standard Price Less