The formula for the materials price variance is

A) (AQ × SP) - (SQ × SP) .
B) (AQ × AP) - (AQ × SP) .
C) (AQ × AP) - (SQ × SP) .
D) (AQ × SP) - (SQ × AP) .

Materials Price Variance

Materials price variance is the difference between the actual cost of materials used in production and the expected (or standard) cost, indicating efficient materials purchasing.

AQ × AP

Represents the multiplication of the Actual Quantity (AQ) by the Actual Price (AP), often used in financial and operational analyses.