Material Price Variance Calculator

✖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.ⓘ Actual Quantity [ACQ]			+10% -10%
✖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.ⓘ Standard Price [STP]			+10% -10%
✖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.ⓘ Actual Price [ACP]			+10% -10%

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

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Formula

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Material Price Variance

Formula

`"MPRV" = "ACQ"*("STP"-"ACP")`

Example

`"74575"="95"*("855"-"70")`

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Material Price Variance Solution

STEP 0: Pre-Calculation Summary

Formula Used

Material Price Variance = Actual Quantity*(Standard Price-Actual Price)
MPRV = ACQ*(STP-ACP)
This formula uses 4 Variables

Variables Used

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

STEP 1: Convert Input(s) to Base Unit

Actual Quantity: 95 --> No Conversion Required
Standard Price: 855 --> No Conversion Required
Actual Price: 70 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

MPRV = ACQ*(STP-ACP) --> 95*(855-70)

Evaluating ... ...

MPRV = 74575

STEP 3: Convert Result to Output's Unit

74575 --> No Conversion Required

FINAL ANSWER

74575 <-- Material Price Variance

(Calculation completed in 00.004 seconds)

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Created by Aashna

IGNOU (IGNOU), India

Aashna has created this Calculator and 50+ more calculators!

Verified by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has verified this Calculator and 25+ more calculators!

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Labour Efficiency Variance

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Labour Rate Variance

Go Labour Rate Variance = Actual Time*(Standard Rate-Actual Rate)*Variance

Cycle Time

Go Cycle Time = Process Time+Inspection Time+Move Time+Queue Time

Revised Standard Hours of Labours

Go Revised Standard Hours of Labours = (Actual Mix/Standard Mix)*(Standard Hours of Labour)

Material Yield Variance

Go Material Yield Variance = (Actual Unit Usage-Standard Unit Usage)*Standard Cost per Unit

Overall Equipment Effectiveness

Go Overall Equipment Effectiveness = Good Count*Ideal Cycle Time/Planned Production Time

Avoided Cost

Go Avoided Costs = Assumed Repair Cost+Production Losses-Preventative Maintenance Cost

Material Usage Variance

Go Material Usage Variance = Standard Price*(Actual Quantity Units-Standard Quantity)

Labour Mix Variance

Go Labour Mix Variance = Standard Rate*(Reversed Standard Rate-Actual Time)

Material Price Variance

Go Material Price Variance = Actual Quantity*(Standard Price-Actual Price)

Material Quantity

Go Material Quantity = Standard Price*(Standard Quantity-Actual Quantity)

Customer Acquisition Cost

Go Customer Acquisition Cost = Cost of Sales and Marketing/Number of New Customers Acquired

Total Addressable Market

Go Total Addressable Market = Annual Contract Value per Client*Number of Potential Clients

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Go First Pass Yield = Number of Good Products Finished/Number of Production Orders Started

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Go Backorder Rate = (Number of Undeliverable Orders/Total Number of Orders)

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Go Takt Time = Production Available Time/Customer Demand

On-Time Delivery

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Material Price Variance Formula

Material Price Variance = Actual Quantity*(Standard Price-Actual Price)
MPRV = ACQ*(STP-ACP)

What is Material Price Variance ?

Material Price Variance is the difference between calculated forecasts of how much a material costs and how much that material costs during actual use. It's a component of the broader concept of "material variance," which includes both price and quantity variances. Material price variance analysis helps management identify areas for cost improvement, assess supplier performance, and evaluate the effectiveness of cost control measures. However, it's essential to consider other factors that may influence costs, such as changes in material quality or production processes, when interpreting variance results.

How to Calculate Material Price Variance?

Material Price Variance calculator uses Material Price Variance = Actual Quantity*(Standard Price-Actual Price) to calculate 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 calculate Material Price Variance using this online calculator? To use this online calculator for Material Price Variance, enter Actual Quantity (ACQ), Standard Price (STP) & Actual Price (ACP) and hit the calculate button. Here is how the Material Price Variance calculation can be explained with given input values -> 74575 = 95*(855-70).

FAQ

What is 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 and is represented as MPRV = ACQ*(STP-ACP) or Material Price Variance = Actual Quantity*(Standard Price-Actual Price). 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, 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 & 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.

How to calculate 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 is calculated using Material Price Variance = Actual Quantity*(Standard Price-Actual Price). To calculate Material Price Variance, you need Actual Quantity (ACQ), Standard Price (STP) & Actual Price (ACP). With our tool, you need to enter the respective value for Actual Quantity, Standard Price & Actual Price and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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