Question

A materials quantity variance is calculated as the difference between the standard direct materials price and the actual direct materials price multiplied by the actual quantity of direct materials used.

Answer 1

Answer:

FALSE. The description is for the materials price variance.

Explanation:

The materials quantity variance is as follows:

$(standard\:quantity-actual\:quantity) \times standard \: cost = DM \: quantity \: variance$

It is the difference between the quantity of materials according to standard measurement and the quantity which actually occur.

This is the quantity in units or pounds above or below standard. Then qwe multiply by the standard price to get a dollar metric.