wordy
Sep 28, 2006, 07:17 AM
Is there a formula for calculating direct materials price and usage variance?
CaptainForest
Sep 28, 2006, 06:59 PM
Material Price Variance = Qa (Ps-Pa)
Where Qa is actual quantity used, Ps is standard/budget price and Pa is actual price
Material Efficiency Variance = Ps (Qs-Qa)
Where Ps is standard/budget price, Qs is budget quantity, and Qa is actual quantity used