The direct materials inventory variance is calculated as:
A)(Actual Price - Standard Price)x Actual Quantity Used
B)(Standard Price - Actual Price)x Standard Quantity Allowed
C)(Actual Quantity Used - Actual Quantity Purchased)x Actual Price
D)(Actual Quantity Purchased - Actual Quantity Used)x Standard Price

Question

Quizplus · Accepted Answer

The direct materials inventory variance is calculated by taking the difference between the actual quantity purchased and the actual quantity used, multiplied by the standard price. This reflects the cost impact of holding inventory.

The Direct Materials Inventory Variance Is Calculated As