The direct materials price variance is based on the quantity of materials purchased when the quantity purchased is different from the quantity used.

Name: The direct materials price variance is based on the quantity of materials purchased when the quantity purchased is different from the quantity used.
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Question

Quizplus · Accepted Answer

The direct materials price variance is calculated based on the quantity of materials purchased, not the quantity used, to reflect the actual cost incurred for the materials.

The Direct Materials Price Variance Is Based on the Quantity