In which of the following variances is the standard unit cost used in the calculations?

Both the direct materials usage variance and the direct materials price
variance.The direct materials usage variance but not the direct materials price
variance. The direct labor price variance but not the direct labor efficiency variance. The direct labor efficiency variance but not the direct labor rate variance.Show Result

Correct - Your answer is correct.

Wrong - Your answer is wrong.

Detailed Answer

Answer (A) is correct.
The materials price variance is calculated by multiplying the difference between actual price and standard price by the actual units purchased.
The materials usage variance is calculated by multiplying the difference
between the actual usage and the standard usage by the standard price.
Thus, the standard unit cost is used to compute both variances.