Direct Materials Price variance is the difference between actual price per unit of input and standard price per unit of input for actual quantity of input. Direct Materials Quantity variance is the difference between actual quantity of input used and standard quantity of input that should have been used. To calculate: To compute the direct materials price and quantity variances and classify each as favorable or unfavorable.

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Chapter 23, Problem 8QS

To determine

Introduction:

Direct Materials Price variance is the difference between actual price per unit of input and standard price per unit of input for actual quantity of input. Direct Materials Quantity variance is the difference between actual quantity of input used and standard quantity of input that should have been used.

To calculate:

To compute the direct materials price and quantity variances and classify each as favorable or unfavorable.

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