Enter the standard price and the actual material cost into the Calculator. The calculator will evaluate the Material Price Variance.
Material Price Variance Formula
MPV = SP - AMC
- MPV is the Material Price Variance ($)
- SP ($) is the standard price
- AMC ($) is the actual material cost
To calculate Material Price Variance, subtract the actual material cost but the standard price.
How to Calculate Material Price Variance?
The following steps outline how to calculate the Material Price Variance.
- First, determine the standard price.
- Next, determine the actual material cost.
- Next, gather the formula from above = MPV = SP – AMC.
- Finally, calculate the Material Price Variance.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
standard price = 334
actual material cost = 156