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A Materials Price Variance Can Be Calculated As

Question 8

Multiple Choice

A materials price variance can be calculated as:

A) (Actual amount of materials X actual material cost per unit) - (Budgeted amount of materials X actual material cost per unit) .
B) (Actual amount of materials X actual material cost per unit) - (Budgeted amount of materials X budgeted material cost per unit) .
C) (Actual amount of materials X actual material cost per unit) - (Actual amount of materials X budgeted material cost per unit) .
D) (Actual amount of materials X budgeted material cost per unit) - (Budgeted amount of materials X budgeted material cost per unit) .
E) (Actual amount of materials X budgeted material cost per unit) - (Budgeted amount of materials X actual material cost per unit) .

Correct Answer: