The difference between the actual price and the standard price,multiplied by the actual quantity of materials purchased,is the:
A)direct materials spending variance.
B)direct materials volume variance.
C)direct materials price variance.
D)direct materials quantity variance.

Question

Quizplus · Accepted Answer

The formula correlates with the direct materials price variance, which measures the difference between the actual price paid for materials and the budgeted or standard price for those same materials. The variance is then multiplied by the actual quantity of materials purchased.

The Difference Between the Actual Price and the Standard Price,multiplied