Chapter 26, Problem 10Q

a.

To determine

Total Materials Variance: The total materials variance is caused by the difference in the price paid for the materials or by the differences in the amount of materials used. It is the sum of the material price variance and the material quantity variance.

Material Price Variance: The material price variance refers to the variation in the actual amount paid for the product and the amount of it which will be at the standard price.

Material Quantity Variance: The material quantity variance refers to the variation in the standard cost of the actual quantity and the standard cost of the amount that should have been used.

To identify: The missing words to be inserted in the formula.

(b).

To determine

To identify: The missing words to be inserted in the formula.

(c).

To determine

To identify: The missing words to be inserted in the formula.