Assume That SQ = Standard Quantity, SP = Standard Price

Multiple Choice

Assume that SQ = Standard Quantity, SP = Standard Price, AQ = Actual Quantity, and AP = Actual Price. The correct entry along with the equation to record the issuance and usage of materials, assuming a favorable materials usage variance, is as follows

A) Work in Process SQ * SP
Materials Usage Variance (AQ - SQ ) SP.
Materials AQ * SP
B) Work in Process SQ * SP.
Materials Usage Variance (AQ - SQ) SP
Materials AQ * SP,
C) Work in Process AQ * AP
Materials Usage Variance (AQ - SQ) SP
Materials AQ * SP
D) Work in Process AQ * AP
Materials Usage Variance (AQ - SQ) SP.,
Materials AQ * SP
E) None of these.