If the actual price of direct materials is $10 per
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 when the actual price per unit is less than the standard price per unit. If the actual price is $10 and this is less than the standard price, the variance is favorable.

If the Actual Price of Direct Materials Is $10 Per