Materials Price Variance

Materials price variance is a measure of the difference between the actual unit price paid for an item and the standard price, multiplied by the quantity purchased.

Direct Materials Price Variance

Direct Materials Price Variance: Learning Objective of the articles: Define and explain “direct materials price variance” and its significance. How is it calculated? How direct materials price variance is interpreted? What are the reasons / causes of unfavorable or favorable materials price variance? Contents: