A. The materials price variance is the difference between the actual price and the standard price of material multiplied by the quantity actually consumed by production. The production manager is not involved in the purchasing activity where the price is negotiated.

B. The materials price variance is the difference between the actual price and the standard price of material multiplied by the quantity actually consumed by production. The cost accounting manager is not involved in the purchasing activity where the price is negotiated.

C. The materials price variance is the difference between the actual price and the standard price of material multiplied by the quantity actually consumed by production. The purchasing manager is responsible for purchasing activity where price is negotiated and is therefore usually held responsible for the material price variance.

D. The materials price variance is the difference between the actual price and the standard price of material multiplied by the quantity actually consumed by production. The sales manager is not involved in the purchasing activity where the price is negotiated.