The direct materials price variance compares:
A) The standard price for labour with the actual price paid
B) The standard price for direct materials with the actual price paid
C) How efficiently labour is used
D) How efficiently direct materials are used

Question

Quizplus · Accepted Answer

The direct materials price variance compares the standard price for direct materials with the actual price paid. This variance measures the difference between what the company expected to pay for the materials and what it actually paid.

The Direct Materials Price Variance Compares