ECONOMICS

Detailed explanation-1: -Hence material price variance is the difference between standard price and actual price multiplied by actual quantity.

Detailed explanation-2: -A material quantity variance is the difference between the actual amount of materials used in the production process and the amount that was expected to be used. The measurement is employed to determine the efficiency of a production process in converting raw materials into finished goods.

Detailed explanation-3: -Find the materials quantity variance by multiplying the standard cost by the difference between the standard and actual quantities.

Detailed explanation-4: -Price variance: This is the difference between the expected and actual prices for the actual amount of material used. Quantity variance: This is the difference between the expected and actual quantity of material used.

Detailed explanation-5: -The difference between actual cost and standard cost is known as Variance.