Register now or log in to join your professional community.
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)
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