Direct Material Price Variance Calculator
The Direct Material Price Variance measures the difference between the actual cost of materials and the standard cost expected for those materials. It helps businesses identify whether they’re paying more or less for materials than anticipated.
Results
Material Price Variance:
$0.00
Variance Type:
–
Enter values above to calculate the material price variance.
How to Use This Calculator
- Enter the actual quantity of materials purchased
- Enter the actual price paid per unit
- Enter the standard price expected per unit
- Click “Calculate Variance” to see results
Understanding Material Price Variance
The formula for calculating Direct Material Price Variance is:
(Actual Price – Standard Price) × Actual Quantity
- Favorable Variance: When actual price is less than standard price (negative result)
- Unfavorable Variance: When actual price is more than standard price (positive result)