[amp_mcq option1=”Standard usage – actual usage” option2=”Standard unit price – actual unit price” option3=”Standard quantity” option4=”Actual quantity” correct=”option1″]<\/p>\n
The correct answer is: A. Standard usage – actual usage.<\/p>\n
The material usage variance is the difference between the actual quantity of materials used and the standard quantity of materials that should have been used, multiplied by the standard price per unit of material.<\/p>\n
The standard quantity of materials that should have been used is calculated by multiplying the standard production quantity by the standard material usage per unit of production.<\/p>\n
The actual quantity of materials used is the actual amount of materials that were used in production.<\/p>\n
The standard price per unit of material is the price that the company expects to pay for each unit of material.<\/p>\n
The material usage variance can be either favorable or unfavorable. A favorable variance occurs when the actual quantity of materials used is less than the standard quantity that should have been used. An unfavorable variance occurs when the actual quantity of materials used is more than the standard quantity that should have been used.<\/p>\n
The material usage variance can be caused by a number of factors, including:<\/p>\n
The material usage variance can be analyzed to identify the factors that caused it and to take corrective action to prevent it from happening again.<\/p>\n","protected":false},"excerpt":{"rendered":"
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