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

Variables:

- 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