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    Question

    Standard Price (Standard Quantity – Actual Quantity) = ____________.

    A Material Price Variance Correct Answer Incorrect Answer
    B Material Usage Variance Correct Answer Incorrect Answer
    C Material Cost Variance Correct Answer Incorrect Answer
    D Material Mix Variance Correct Answer Incorrect Answer

    Solution

    The formula you provided: Standard Price (Standard Quantity – Actual Quantity) = Material Usage Variance Material Usage Variance is a component of variance analysis in standard costing. It measures the difference between the actual quantity of materials used and the standard quantity that should have been used at the standard price. The variance indicates whether more or fewer materials were used than expected, and it helps in evaluating the efficiency of material usage in the production process.

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