The materials price variance is measured as:
A) (Actual Price X Actual Quantity) - (Standard Price X Actual Quantity)
B) (Actual Price X Standard Quantity) - (Standard Price X Standard Quantity)
C) (Actual Price X Actual Quantity) - (Actual Price X Standard Quantity)
D) (Standard Price X Actual Quantity) - (Standard Price X Standard Quantity)

Question

Quizplus · Accepted Answer

The materials price variance is calculated as the difference between the actual cost of materials and what the cost should have been for the actual quantity purchased, which is represented by the formula: (Actual Price X Actual Quantity) - (Standard Price X Actual Quantity). This measures the variance due to the difference in price only.

The Materials Price Variance Is Measured As