The formula to compute the direct materials price variance is to calculate the difference between
A) Actual costs - (Actual quantity × Standard price)
B) Actual cost + Standard costs
C) Actual cost - Standard costs
D) (Actual quantity × Standard price)- Standard costs

Question

Quizplus · Accepted Answer

The direct materials price variance formula is actual cost of materials purchased minus (actual quantity purchased multiplied by standard price per unit). This calculation will give the difference between the actual amount spent on materials and the expected amount based on the standard price.

The Formula to Compute the Direct Materials Price Variance Is