If the actual cost per pound of direct material is less than the standard cost per pound,there is:
A)A favorable materials price variance.
B)An unfavorable materials price variance.
C)A favorable materials quantity variance.
D)A favorable total materials variance.

Question

Quizplus · Accepted Answer

A favorable materials price variance occurs when the actual cost per unit of material is less than the standard cost per unit, indicating that the company paid less for the same amount of material than it anticipated.

If the Actual Cost Per Pound of Direct Material Is