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The formula to compute direct materials price variance is to calculate the difference between a. actual costs - (actual quantity * standard price) b. actual cost + standard costs c. actual cost - standard costs d. (actual quantity * standard price) -standard costs ANS: A DIF: Moderate OBJ: 23-03 NAT: AACSB Analytic | IMA-Performance Measurement 51.
the difference between the actual hourly rate paid and the standard hourly rate multiplied by the actual hours worked. direct materials price variance. the difference between the actual price paid per unit of materials and the standard price allowed per unit multiplied by the actual quantity of materials purchased. the difference between the direct materials actually used and the direct materials allowed for actual output multiplied by the standard price.