
Concept explainers
Concept Introduction- Direct material price variance-
Direct material price variance is the difference between
Direct material usage variance-
Direct material usage variance is the difference between standard quantity of material to be used in actual production and the actual quantity of the material used in the production. If standard quantity is more than the actual quantity, then the variance calculated will be favourable. If standard quantity is less than the actual quantity, then the variance calculated will be unfavourable. It is calculated as follows-
To Calculate- Direct material price variance and direct material usage variance

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Chapter 15 Solutions
Principles of Financial Accounting (Elon University)
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