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متابعة

What is the direct material price variance?

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تم إضافة السؤال من قبل Shameer Nazir Madari , Assistant Finance Manager , METAL AND RECYCLING COMPANY K.S.C. (PUBLIC)
تاريخ النشر: 2016/04/26
mohammed shahnawaz ahmed
من قبل mohammed shahnawaz ahmed , Financial analyst , JP FINANCIAL AND INVESTMENT SERVICES

MATERIAL PRICE VARIANCE  is the variance caused by the difference between the actual price paid and the standard price of the direct materials.This can be calculated as follows:

actual quantity*(actual price paid-standard price)

KHALID HAMID SIDDIQUI
من قبل KHALID HAMID SIDDIQUI , Assistant Manager , Toyota - Indus Motor Company

The direct material price variance is the difference between Standard Material Price & Actual Material Price. That is

 

Material Price Variance = Actual Quantity X Standard Price - Actual Quantity X Actual Price