A debit balance in the direct materials price variance indicates the standard cost of materials was less than the actual cost of materials.

Name: A debit balance in the direct materials price variance indicates the standard cost of materials was less than the actual cost of materials.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A debit balance in the direct materials price variance means that the actual cost of materials exceeded the standard cost of materials, indicating a favorable variance.

A Debit Balance in the Direct Materials Price Variance Indicates