|Actual price per unit
|Standard price per unit:
|Actual quantity purchased:
Please like us on facebook
How to use direct materials price variance calculator?
Inputs to be provided:
You need to provide the following three inputs to use direct materials price variance calculator:
Actual price per unit:
It is the per unit price that is actually paid to purchase direct materials. For example, $25 per kg, $0.5 per meter and $15 per pound etc.
Standard price per unit:
Fill this field with standard price per unit of direct materials. This figure is determined as the part of budgeting process of the firm or company and is usually different from the actual price per unit.
Actual quantity purchased:
It is the total quantity of direct materials purchased during a particular period of time for which you are interested to calculate the variance.
Outputs to be generated:
Direct materials price variance:
The calculator processes the above three inputs and calculates the variance for you. It also tells whether the variance is favorable or unfavorable.