A. This is the materials efficiency variance. However, the question asks for the materials price variance. See the correct answer for a complete explanation.
B. The variance is unfavorable because the actual price ($28) is higher than standard ($24). See the correct answer for a complete explanation.
C. The direct materials price variance is calculated as follows: (Actual Price - Standard Price) × Actual Quantity. All the components of the formula are in the data given. The actual price is $28. The standard price is $24. The actual quantity is 190,000. Therefore, the direct materials price variance is ($28 - $24) × 190,000 = $760,000 unfavorable. Because the actual price was higher than the standard, the variance is unfavorable.
D. This is the direct labor rate variance. However, the question asks for the direct materials price variance. See the correct answer for a complete explanation.
