The materials price variance is calculated as
A) (Actual price - Standard price) x Actual quantity
B) (Actual price - Standard price) x Standard quantity
C) (Actual quantity - Standard quantity) x Actual price
D) (Actual quantity - Standard quantity) x Standard price

Question

Quizplus · Accepted Answer

The materials price variance is calculated as the difference between the actual price and the standard price, multiplied by the actual quantity of materials used. This measures how much more or less was paid for the materials than was expected.

The Materials Price Variance Is Calculated as