Question

In: Accounting

Which of the following mathematical expressions is used to compute the materials usage variance?

Which of the following mathematical expressions is used to compute the materials usage variance? 


a. (Fixed price × Standard quantity) + (Variable price × Actual quantity) 

b. (Actual price × Standard quantity) + (Actual quantity × Standard price) 

c. (Average price × Average quantity) – (Standard price × Standard quantity) 

d. (Standard price × Actual quantity) – (Standard price × Standard quantity) 

e. None of these choices are correct.

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