Answer:
The correct option is E.
Step-by-step explanation:
The following notation are
AP = Actual price
AQ = Actual quantity
SP = Standard price
SQ =Standard quantity
The standard cost is
[tex]SC=AQ\times SP[/tex]
The actual cost is
[tex]AC=AQ\times AP[/tex]
The direct materials price variance is the difference between the actual cost and standard cost
[tex]V_{MP}=AC-SC[/tex]
[tex]V_{MP}=AQ\times AP-AQ\times SP[/tex]
[tex]V_{MP}=AQ\times (AP-SP)[/tex]
None of the given formula is correct.
Therefore, the correct option is E.
