Question

The materials price variance is calculated using the Blank______.



Multiple select question.

standard quantity allowed of the input for the actual output


actual price of the input


standard price of the input


actual quantity of the input purchased

Answer 1

The materials price variance is calculated using the following components:

1. **Actual Price of the Input**: This reflects the price actually paid for the materials.
2. **Standard Price of the Input**: This is the predetermined price that was expected to be paid for the materials.

So, the correct options for calculating the materials price variance would be:

- **Actual Price of the Input**
- **Standard Price of the Input**

The formula for the materials price variance is typically given as:

\[
\text{Materials Price Variance} = (\text{Actual Price} - \text{Standard Price}) \times \text{Actual Quantity Purchased}
\]

Note that while the actual quantity purchased is involved in the calculation, the question explicitly asks for the components used to calculate the variance itself, which are the actual price and standard price. The standard quantity allowed is relevant for calculating the materials quantity variance, not the price variance.