Direct Material Price Variance Calculator

This cost accounting calculator computes the direct materials price variance from the standard rate, actual rate, and quantity purchased.

Formula notes

Variance = quantity x actual rate - quantity x standard rate = quantity x (actual rate - standard rate).

Worked examples

1. Example: 100 units at a standard rate of 10 and actual rate of 12 gives a variance of 200 (unfavorable).
2. 100 units at standard rate 10 and actual rate 12 gives an unfavorable variance of 200.

How to use it

1. Enter the standard rate per unit.
2. Enter the actual rate per unit.
3. Enter the quantity and read the variance.

Frequently asked questions

Limits and interpretation

• A positive variance is unfavorable; a negative variance is favorable.
• The calculator assumes the standard and actual rates are per-unit prices in the same currency.

References

• OpenStax Principles of Managerial Accounting