Price variance is calculated as follows:
Price variance = (actual quantity x actual price) – (actual quantity x standard price)
Quantity variance is calculated as follows:
Quantity variance = (actual quantity x standard price) – (standard quantity x standard price)
Price variance calculates the change in the price while the quantity variance calculates the changes in the quantity only.
Variance
Price variance = (actual quantity x actual price) – (actual quantity x standard price)
Quantity variance is calculated as follows:
Quantity variance = (actual quantity x standard price) – (standard quantity x standard price)
Price variance calculates the change in the price while the quantity variance calculates the changes in the quantity only.
Variance
