A favorable direct materials price variance indicates which of the following:
A.
The actual quantity of material used was less than the standard quantity of material used.
B.
The standard cost of materials purchased was greater than the actual cost of materials purchased.
C.
The actual cost of materials purchased was greater than the standard cost of materials purchased.
D.
The standard cost of materials purchased was less than the actual cost of materials purchased.
Answer :
B) The Standard Cost of Material Purchased was Greater that the Actual cost of Material Purchased
Direct Material Price Variance = Actual cost of Material Purchased - Standard Cost of Material Purchased
IF : Standard cost > Actual cost , favorable Material Price Variance , vice-versa
A favorable direct materials price variance indicates which of the following: A. The actual quantity of...