|Standard price per unit:|
|Actual quantity used:|
|Standard quantity allowed:|
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How to use direct materials quantity variance calculator:
Inputs to be provided:
Standard price per unit:
Standard price per unit is the standard price of a unit of direct materials that is determined at the time when direct materials price and quantity standards are set for a forthcoming period. Setting standards is a part of overall budgeting process.
Actual quantity used:
The units of direct materials actually used to manufacture a certain number of units of finished product.
Standard quantity allowed:
The number of units of direct materials allowed by standards to manufacture a certain number of units of finished products. For example, if you have produced 100 units of finished product and the standard quantity to manufacture a single unit of finished product is 2 units of direct materials then the standard quantity allowed would be 200 (100 × 2) units of direct materials.
Outputs to be generated:
The direct materials quantity variance calculator uses the above three inputs and calculates the following two figures for you:
Direct materials quantity variance in units:
It is the difference between actual quantity used and standard quantity allowed – the variance of quantity only.
Direct materials quantity variance in dollars:
The quantity variance is multiplied by the standard price and translated into a favorable or unfavorable direct materials quantity variance in dollars.