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-   -   Standard cost variance (https://www.askmehelpdesk.com/showthread.php?t=201494)

  • Apr 2, 2008, 09:15 AM
    roulette13
    Standard cost variance
    In using standard cost, what is materials price variance?
  • Apr 2, 2008, 01:58 PM
    hellsailor
    Direct materials price variance shows the effect on profit of paying more or less for the material than the price used in the budget.
    The formula used for this variance is (SP-AP)AM
    where SP = standard price
    AP = actual price paid,
    AM = actual quantity of materials used

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