The algebraic equation for the direct materials price variance is A)Direct materials price variance = AQ_purch x AP - SP B)Direct materials price variance = SQ_purch x AP - SP C)Direct materials price variance = SP x AQ_purch - SQ_purch D)Direct materials price variance = AP x AQ_purch - SQ_purch

Question

Quizplus · Accepted Answer

The direct materials price variance is calculated as the difference between the actual price and the standard price, multiplied by the actual quantity purchased: AQ_purch x (AP - SP).

The Algebraic Equation for the Direct Materials Price Variance Is