Which formula is used to calculate the materials price variance?
A) (actual price × actual quantity) - (standard price × actual quantity)
B) (standard price × actual quantity) - (actual price × actual quantity)
C) (actual price × actual quantity) - (standard price × standard quantity)
D) (standard price × standard quantity) - (actual price × actual quantity)

Question

Quizplus · Accepted Answer

The materials price variance is calculated by comparing the actual price paid for materials to the standard price, multiplied by the actual quantity purchased.

Which Formula Is Used to Calculate the Materials Price Variance