The materials price variance is the difference between the actual price of materials and the standard cost of those materials. Here are the steps to calculate it:

1. Determine the standard cost of materials: This is the cost that the company expects to pay for the materials. It is usually determined based on market prices or past purchase prices.

2. Determine the actual cost of materials: This is the cost that the company actually paid for the materials. It can be found on the purchase invoices or receipts.

3. Subtract the standard cost from the actual cost: This will give you the materials price variance. If the result is positive, it means that the company paid more for the materials than expected (unfavorable variance). If the result is negative, it means that the company paid less for the materials than expected (favorable variance).

Question

The materials price variance is the difference between the actual price of materials and the standard cost of those materials. Here are the steps to calculate it:

1. Determine the standard cost of materials: This is the cost that the company expects to pay for the materials. It is usually determined based on market prices or past purchase prices.

2. Determine the actual cost of materials: This is the cost that the company actually paid for the materials. It can be found on the purchase invoices or receipts.

3. Subtract the standard cost from the actual cost: This will give you the materials price variance. If the result is positive, it means that the company paid more for the materials than expected (unfavorable variance). If the result is negative, it means that the company paid less for the materials than expected (favorable variance).

Knowee AI · Accepted Answer

The materials price variance is the difference between the actual price of materials and the standard cost of those materials. Here are the steps to calculate it:

1. Determine the standard cost of materials: This is the cost that the company expects to pay for the materials. It is usually determined based on market prices or past purchase prices.

2. Determine the actual cost of materials: This is the cost that the company actually paid for the materials. It can be found on the purchase invoices or receipts.

3. Subtract the standard cost from the actual cost: This will give you the materials price variance. If the result is positive, it means that the company paid more for the materials than expected (unfavorable variance). If the result is negative, it means that the company paid less for the materials than expected (favorable variance).

The materials price variance is the difference between the actual price of materials Blank______.

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The materials price variance is the difference between the actual price of materials Blank______.

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