Direct Material Price Variance Calculator

Calculate Direct Material Price Variance (DMPV) and analyze material cost deviations with detailed insights

✓ Variance Analysis ✓ Cost Control ✓ Procurement Insights

Direct Material Price Variance Calculator

Material Cost Data

Additional Context

Budget Analysis (Optional)

About DMPV

Direct Material Price Variance measures the difference between standard and actual material costs

DMPV Formula:

DMPV = (Actual Price - Standard Price) × Actual Quantity

Variance Interpretation

U
Unfavorable (Positive)
Actual price > Standard price
F
Favorable (Negative)
Actual price < Standard price

Common Causes

Unfavorable: Market price increases, supplier changes, quality upgrades
Favorable: Bulk discounts, market price drops, supplier negotiations
External: Economic conditions, supply chain disruptions
Internal: Procurement efficiency, contract management
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How to Use

  1. Enter the standard (budgeted) price per unit
  2. Input the actual price paid per unit
  3. Add the actual quantity purchased
  4. Select material type and industry context
  5. Add budget information for deeper analysis
  6. Review variance analysis and recommendations

Variance Management

Favorable Variance

Cost savings achieved - analyze for sustainability and replication.

Minor Unfavorable

Monitor closely - may indicate market trends or supplier issues.

Significant Unfavorable

Immediate action required - investigate causes and implement corrective measures.