Question

The materials price variance is the difference between the actual price of materials ______. Multiple choice question. and the standard price for materials with the difference multiplied by the standard quantity of material allowed and the standard price for materials with the difference multiplied by the actual quantity of materials times the actual quantity of materials and the standard price of materials times the standard quantity allowed for production

Answer 1

and the standard price paid for direct materials multiplied by the actual quantity of direct materials purchased

Step-by-step explanation:

The formula to calculate the material price variance is

Material price variance is

= (Standard price - actual price) × actual quantity

Based on the above formula, the above statement represent the formula of the material price variance

Hence, the same is to be considered