Answer:
B) Direct materials price variance
Explanation:
Company uses sugar while producing a product, that means it is a direct material for the product, further provided that cost gets doubled of buying a unit of sugar, that is actual rate is now twice of earlier rate.
Therefore since only direct material price variance uses actual rate it will be affected.
Direct Material Price Variance = (Standard Price - Actual Price) [tex]\times[/tex] Actual quantity.
Else labor variance does not use direct material price, therefore option C) and option D) are invalid further direct material quantity variance uses standard rate and no actual rate is used.
Therefore correct option is
D) Direct Material Price Variance
