The formula for the materials price variance is
A) (AQ × SP) - (SQ × SP).
B) (AQ × AP) - (AQ × SP).
C) (AQ × AP) - (SQ × SP).
D) (AQ × SP) - (SQ × AP).

Question

Quizplus · Accepted Answer

The materials price variance formula is (Actual Quantity (AQ) × Actual Price (AP)) - (Actual Quantity (AQ) × Standard Price (SP)), which identifies the difference between what the materials actually cost and what they should have cost at the standard price.

The Formula for the Materials Price Variance Is