In: Accounting
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.