When the purchase of raw materials is recorded in transaction (a) above, which of the following entries will be made?

A) $32,070 in the Materials Price Variance column
B) ($32,070) in the Materials Quantity Variance column
C) $32,070 in the Materials Quantity Variance column
D) ($32,070) in the Materials Price Variance column

Materials Price Variance

The difference between the actual cost of direct materials and the standard cost, reflecting how effectively a company is purchasing materials.

Materials Quantity Variance

A financial metric used in cost accounting to measure the difference between the actual quantity of materials used in production and the expected quantity.