A. cost variance is favourable
B. cost variance is unfavourable
C. price variance is favourable
D. price variance is unfavourable
✅ The correct answer is option C.
If an actual price of material is $700 and budgeted price is $900, then the price variance is favourable. If the actual cost incurred is lower than the standard cost, this is considered a favorable price variance.
If an actual price of material is $700 and budgeted price is $900, then the price variance is favourable. If the actual cost incurred is lower than the standard cost, this is considered a favorable price variance.