Direct materials price, The quantity purchased is used in

Direct materials price

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Reference no: EM1364421

The quantity purchased is used in computing the direct materials price variance because you are looking for the difference in the price of materials for the job, whereas, when computing the materials quantity variance you are comoparing the standard material quantity against what i actually took to do the job. Material price is based on how much the materials were for the job compared to the standard price.

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Reference no: EM1364421

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