Which of the following formulas is used to calculate the materials price variance?
A) (Actual Price × Actual Quantity) - (Standard Price × Standard Quantity)
B) (Variable Price × Actual Quantity) - (Total Price × Actual Quantity)
C) (Fixed Price × Average Quantity) - (Standard Price × Actual Quantity)
D) (Actual Price × Actual Quantity) - (Standard Price × Actual Quantity)
E) None of these.

Question

Quizplus · Accepted Answer

The materials price variance formula is given by (Actual Price × Actual Quantity) - (Standard Price × Actual Quantity).

Which of the Following Formulas Is Used to Calculate the Materials