The direct material quantity variance is the difference between the actual quantity and the standard quantity of materials multiplied by the actual price.The quantity variance is the difference between the actual quantity and the standard quantity of materials multiplied by the standard price.

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The statement mistakenly switched the definitions for direct material quantity variance and direct material price variance. The direct material quantity variance is the difference between the actual quantity and the standard quantity of materials multiplied by the standard price, while the direct material price variance is the difference between the actual price and the standard price of materials multiplied by the actual quantity.

The Direct Material Quantity Variance Is the Difference Between the Actual