What is characteristic of direct materials variances?
A) The materials usage variance uses the actual quantity of materials purchased.
B) The materials price variance uses the actual quantity of materials purchased rather than the actual quantity of materials used.
C) The materials price variance always uses the actual quantity of materials used rather than the actual quantity of materials purchased.
D) The sum of the price and usage variances will add up to the total materials variance even if the amount of materials purchased is different from the amount of materials used.

Question

Quizplus · Accepted Answer

In direct materials variances, the materials usage variance uses the actual quantity of materials used, while the materials price variance uses the actual price paid per unit of materials purchased. Therefore, choice B is correct as it correctly states that the materials price variance uses the actual quantity of materials purchased rather than the actual quantity of materials used. Choices A, C, and D have incorrect statements.

What Is Characteristic of Direct Materials Variances