ACCT 323 Written Question #2


When doing the Final Review package, I answered question 2B and C correctly but when I checked the answer key, I got A wrong and I was wondering if there was an error in the answer key.

The answer key has the calculation (Direct Materials Quantity Variance – Total Direct Materials Variance) = (Direct Materials Price Variance) but I don’t think the equation is correct. Should it not be (Total – Quantity) to calculate the Price variance?