Match each of the following formulas or descriptions with the term (a-e) it defines.
-(Actual Price - Standard Price) × Actual Quantity
A)Direct materials price variance
B)Direct labor rate variance
C)Direct labor time variance
D)Direct materials quantity variance
E)Budgeted variable factory overhead

Question

Quizplus · Accepted Answer

The formula (Actual Price - Standard Price) × Actual Quantity is used to calculate the Direct materials price variance, which measures the difference between what was actually paid for the materials versus what should have been paid according to the standard cost.

Match Each of the Following Formulas or Descriptions with the Term