Afavorable price variance for direct materials indicates that: group of answer choices a lower price than planned was paid for materials a higher price than planned was paid for materials less material was used during production than planned for actual output more material was used during production than planned for actual output

a lower price than planned was paid for materials

Explanation:

Direct material price variance is the difference between actual cost and standard cost.

Price variance is favourable when actual cost is less than standard cost. That is, when a lower price than planned was paid for materials.

Price variance is unfavourable when actual cost is greater than standard cost. This is, a higher price than planned was paid for materials.

I hope my answer helps you.

you get one warning and if you do something to violate the guidelines of after that you get kicked off.

mark as