(Actual Quantity - Standard Quantity) × Standard Price

A) Direct materials price variance
B) Direct labor rate variance
C) Direct labor time variance
D) Direct materials quantity variance
E) Budgeted variable factory overhead

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected, multiplied by the standard cost per unit.

Standard Quantity

The predetermined amount of materials or inputs planned to be used in a manufacturing process or task.

Standard Price

A predetermined cost that companies assign to goods and services, used as a benchmark to measure the actual cost performance.