The materials purchase price variance, in a standard cost system, is obtained by multiplying the: Group of answer choices a. Actual price by the difference between actual quantity purchased and standard quantity used. b. Actual quantity purchased by the difference between actual price and standard price. c. Standard price by the difference between standard quantity purchased and standard quantity used. d. Standard quantity purchased by the difference between actual price and standard price.

b. Actual quantity purchased by the difference between actual price and standard price

When computing materials purchase price variance in standard costing system, we use the formula below ;

= Actual Quantity × (Standard Price - Actual Price)

Material purchase price variance is derived by subtracting standard price from actual price and then multiplying it by the actual quantity so that we would get the value.

Thus, the materials purchase price variance, in a standard cost system, is obtained by multiplying actual quantity purchased by the difference between actual price and standard price.

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b. Actual quantity purchased by the difference between actual price and standard price

Explanation:

The formula to compute the material purchase price is shown below:

= Actual Quantity × (Standard Price - Actual Price)

It is derived by taking a difference between the standard price and the actual price and then multiplying it by the actual quantity so that the material price or material purchase price variance could come

Hence, the correct option is b.

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