If the actual price of direct material is $10 per unit while the standard price of the direct material is $11,
A)the direct materials quantity variance will be favorable.
B)the direct materials quantity variance will be unfavorable.
C)the direct materials price variance will be favorable.
D)the direct materials price variance will be unfavorable.

Question

Quizplus · Accepted Answer

The direct materials price variance is favorable because the actual price of the material ($10) is less than the standard price ($11), indicating a cost saving on the price of materials.

If the Actual Price of Direct Material Is $10 Per