Chapter 11, Problem 2QC

(Learning Objective 2) The direct material price variance can be defined as which of the following?

1. a. Standard quantity allowed × (Actual price – Standard price)
2. b. Actual quantity purchased × (Actual price – Standard price)
3. c. Standard price × (Actual quantity used – Standard quantity allowed)
4. d. Actual price × (Actual quantity used – Standard quantity allowed)