Thursday, 8 August 2013

The general model for calculating a quantity variance is: actual quantity of inputs used x (actual price - standard price). standard price x (actual quantity of inputs used - standard quantity allowed for output). (actual quantity of inputs used at actual price) - (standard quantity allowed for output at standard price). actual price x (actual quantity of inputs used - standard quantity allowed for output).

The general model for calculating a quantity variance is:

actual quantity of inputs used x (actual price - standard price).

standard price x (actual quantity of inputs used - standard quantity allowed for output).

(actual quantity of inputs used at actual price) - (standard quantity allowed for output at standard price).

actual price x (actual quantity of inputs used - standard quantity allowed for output).
Answer
standard price x (actual quantity of inputs used - standard quantity allowed for output).

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