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Material Price Variance Formula

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Material Price Variance is the difference between the actual price paid to acquire a direct materials item and its budgeted price. Check FAQs

MPRV = ACQ \cdot (STP - ACP)

MPRV - Material Price Variance?ACQ - Actual Quantity?STP - Standard Price?ACP - Actual Price?

Material Price Variance Example

With values

With units

Only example

Here is how the Material Price Variance equation looks like with Values.

Here is how the Material Price Variance equation looks like with Units.

Here is how the Material Price Variance equation looks like.

74575 = 95 \cdot (855 - 70)

74575 = 95 \cdot (855 - 70)

74575 = 95 \cdot (855 - 70)

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Material Price Variance Solution

Follow our step by step solution on how to calculate Material Price Variance?

FIRST Step Consider the formula

MPRV = ACQ \cdot (STP - ACP)

Next Step Substitute values of Variables

∴

MPRV = 95 \cdot (855 - 70)

Next Step Prepare to Evaluate

∴

MPRV = 95 \cdot (855 - 70)

LAST Step Evaluate

∴

MPRV = 74575

Material Price Variance Formula Elements

Variables

Material Price Variance

Material Price Variance is the difference between the actual price paid to acquire a direct materials item and its budgeted price.

Symbol: MPRV

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Material Price Variance

Actual Quantity

Actual Quantity refers to the real amount or volume of a specific item, material, product, or resource used, consumed, produced, or acquired within a certain timeframe.

Symbol: ACQ

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Actual Quantity

Standard Price

Standard Price refers to the predetermined cost per unit of a particular material based on factors such as historical data, market prices, negotiated contracts, or internal cost estimates.

Symbol: STP

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Standard Price

Actual Price

Actual Price refers to the real cost per unit of a specific item, material, product, or resource that has been incurred within a certain timeframe.

Symbol: ACP

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Actual Price

Other formulas in Cost Accounting category

Go Material Cost Variance

MCV = (SQAO \cdot STP) - (ACQ \cdot ACP)

Go Material Quantity

MQ = STP \cdot (SQ - ACQ)

Go Revised Standard Quantity

RSTQ = (\frac{SQM}{TSQ}) \cdot TAQ

Go Material Usage Variance

MUV = STP \cdot (AQU - SQ)

How to Evaluate Material Price Variance?

Material Price Variance evaluator uses Material Price Variance = Actual Quantity*(Standard Price-Actual Price) to evaluate the Material Price Variance, Material Price Variance is a concept used in cost accounting to measure the difference between the actual cost of materials used in production and the standard cost of those materials. Material Price Variance is denoted by MPRV symbol.

How to evaluate Material Price Variance using this online evaluator? To use this online evaluator for Material Price Variance, enter Actual Quantity (ACQ), Standard Price (STP) & Actual Price (ACP) and hit the calculate button.

FAQs on Material Price Variance

What is the formula to find Material Price Variance?

The formula of Material Price Variance is expressed as Material Price Variance = Actual Quantity*(Standard Price-Actual Price). Here is an example- 74575 = 95*(855-70).

How to calculate Material Price Variance?

With Actual Quantity (ACQ), Standard Price (STP) & Actual Price (ACP) we can find Material Price Variance using the formula - Material Price Variance = Actual Quantity*(Standard Price-Actual Price).

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Material Price Variance Formula

Material Price Variance Example

Material Price Variance Solution

Material Price Variance Formula Elements

Other formulas in Cost Accounting category

How to Evaluate Material Price Variance?

FAQs on Material Price Variance

Variable Name