Direct materials price variance

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Direct materials price variance this variance tells managers how much of the total direct materials variance is due to paying a higher or lower price than expected for the direct materials it purchased. It is calculated as follows: AQP X (AP SP).

Definitions

According to Managerial Accounting by Braun, Tietz (5th edition),

Direct materials price variance. This variance tells managers how much of the total direct materials variance is due to paying a higher or lower price than expected for the direct materials it purchased. It is calculated as follows: AQP X (AP SP).