The total materials variance is equal to the
A) materials price variance.
B) difference between the materials price variance and materials quantity variance.
C) product of the materials price variance and the materials quantity variance.
D) sum of the materials price variance and the materials quantity variance.

Question

Quizplus · Accepted Answer

The total materials variance is the overall variance in the total cost of materials used in production. It is the sum of the materials price variance and the materials quantity variance, as these two variances together explain the difference between the actual cost of materials and the expected cost of materials. Therefore, choice D is the best answer.

The Total Materials Variance Is Equal to the