ECONOMICS

Detailed explanation-1: -When computing standard cost variances, the difference between actual and standard price multiplied by actual quantity yieldsa(n):combined price and quantity variance. quantity variance.

Detailed explanation-2: -When computing variances from standard costs, the difference between actual and standard price multiplied by actual quantity yields: Price variance.

Detailed explanation-3: -Price variance is the actual unit cost of a purchased item, minus its standard cost, multiplied by the quantity of actual units purchased. Price variance is a crucial factor in budget preparation.

Detailed explanation-4: -When standards are compared to actual performance numbers, the difference is what we call a “variance.” Variances are computed for both the price and quantity of materials, labor, and variable overhead and are reported to management.

Detailed explanation-5: -Answer and Explanation: The price variance can occur concerning material prices or labor costs.