The equation for the materials quantity variance is (AQ × AP) – (SQ × SP).
The materials quantity variance is a measure of the difference between the actual quantity (AQ) of materials used and the standard quantity (SQ) of materials that should have been used, multiplied by the standard price (SP) per unit. The variance indicates whether more or fewer materials were used compared to the standard, and it quantifies the cost impact of the difference.
The formula (AQ × AP) – (SQ × SP) calculates the materials quantity variance by multiplying the actual quantity (AQ) by the actual price (AP) per unit and subtracting the product of the standard quantity (SQ) and the standard price (SP) per unit. This formula directly compares the actual and standard quantities and calculates the cost impact of any deviations.
Therefore, the correct equation for the materials quantity variance is (AQ × AP) – (SQ × SP).
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