The direct materials price variance is calculated using which three amounts?
A)Actual quantity purchased, standard quantity purchased, actual price paid
B)Actual quantity purchased, standard quantity purchased, standard price paid
C)Standard quantity purchased, actual price paid, standard price paid
D)Actual quantity purchased, actual price paid, standard price paid

Question

Quizplus · Accepted Answer

The direct materials price variance is calculated using the actual quantity purchased, actual price paid, and standard price paid. The standard quantity purchased is not used in calculating the direct materials price variance as it is only used in calculating the direct materials quantity variance.

The Direct Materials Price Variance Is Calculated Using Which Three