The direct materials price variance is calculated by (actual price

Question

The direct materials price variance is calculated by (actual price - standard price) multiplied by quantity purchased.

Quizplus · Accepted Answer

The direct materials price variance is indeed calculated by taking the difference between the actual price and the standard price and then multiplying that difference by the quantity purchased. This variance helps in analyzing the difference between what was actually paid for the materials versus what was expected to be paid.