Which of the following choices correctly notes the use of the standard price per unit of direct material when calculating the materials price variance and the material quantity variance?
A)Choice A
B)Choice B
C)Choice C
D)Choice D
E)Choice E

Question

Which of the following choices correctly notes the use of the standard price per unit of direct material when calculating the materials price variance and the material quantity variance? 
A)Choice A 
B)Choice B 
C)Choice C 
D)Choice D 
E)Choice E

Quizplus · Accepted Answer

The standard price per unit of direct material is used to calculate both the materials price variance and the material quantity variance. This is because the price variance measures the difference between the actual price paid for the direct materials and the standard price, while the quantity variance measures the difference between the actual quantity of direct materials used and the standard quantity. Therefore, Choice A correctly notes the use of the standard price per unit for both variances.

Which of the Following Choices Correctly Notes the Use of the Standard