HCF calculator

Material Cost Variance Calculator

Financial Chemistry Engineering Health More >>

↳

Cost Accounting Banking Business Common Probability Distribution More >>

⤿

Important Formulas of Cost Accounting

✖Standard Quality for Actual Output refers to the predetermined or expected quality level of the goods or services produced, based on established standards or specifications.ⓘ Standard Quality for Actual Output [SQAO]			+10% -10%
✖Standard Price refers to the predetermined cost per unit of a particular material based on factors such as historical data, market prices, negotiated contracts, or internal cost estimates.ⓘ Standard Price [STP]			+10% -10%
✖Actual Quantity refers to the real amount or volume of a specific item, material, product, or resource used, consumed, produced, or acquired within a certain timeframe.ⓘ Actual Quantity [ACQ]			+10% -10%
✖Actual Price refers to the real cost per unit of a specific item, material, product, or resource that has been incurred within a certain timeframe.ⓘ Actual Price [ACP]			+10% -10%

✖Material Cost Variance assesses the difference between the actual cost of materials used in production and the standard cost of materials that should have been used for the actual production output.ⓘ Material Cost Variance [MCV]

⎘ Copy

👎

Formula

LaTeX

Reset

👍

Download Cost Accounting Formula PDF PDF Image

Material Cost Variance Solution

STEP 0: Pre-Calculation Summary

Formula Used

Material Cost Variance = (Standard Quality for Actual Output*Standard Price)-(Actual Quantity*Actual Price)
MCV = (SQAO*STP)-(ACQ*ACP)
This formula uses 5 Variables

Variables Used

Material Cost Variance - Material Cost Variance assesses the difference between the actual cost of materials used in production and the standard cost of materials that should have been used for the actual production output.
Standard Quality for Actual Output - Standard Quality for Actual Output refers to the predetermined or expected quality level of the goods or services produced, based on established standards or specifications.
Standard Price - Standard Price refers to the predetermined cost per unit of a particular material based on factors such as historical data, market prices, negotiated contracts, or internal cost estimates.
Actual Quantity - Actual Quantity refers to the real amount or volume of a specific item, material, product, or resource used, consumed, produced, or acquired within a certain timeframe.
Actual Price - Actual Price refers to the real cost per unit of a specific item, material, product, or resource that has been incurred within a certain timeframe.

STEP 1: Convert Input(s) to Base Unit

Standard Quality for Actual Output: 425 --> No Conversion Required
Standard Price: 855 --> No Conversion Required
Actual Quantity: 95 --> No Conversion Required
Actual Price: 70 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

MCV = (SQAO*STP)-(ACQ*ACP) --> (425*855)-(95*70)

Evaluating ... ...

MCV = 356725

STEP 3: Convert Result to Output's Unit

356725 --> No Conversion Required

FINAL ANSWER

356725 <-- Material Cost Variance

(Calculation completed in 00.004 seconds)

You are here -

Home » Financial » Cost Accounting » Material Cost Variance

Credits

Created by Aashna

IGNOU (IGNOU), India

Aashna has created this Calculator and 100+ more calculators!

Verified by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has verified this Calculator and 50+ more calculators!

< Cost Accounting Calculators

Material Cost Variance

LaTeX Go Material Cost Variance = (Standard Quality for Actual Output*Standard Price)-(Actual Quantity*Actual Price)

Revised Standard Quantity

LaTeX Go Revised Standard Quantity = (Standard Quantity of each Material/Total Standard Quantity)*Total Actual Quantity

Material Price Variance

LaTeX Go Material Price Variance = Actual Quantity*(Standard Price-Actual Price)

Material Quantity

LaTeX Go Material Quantity = Standard Price*(Standard Quantity-Actual Quantity)

Material Cost Variance Formula

LaTeX Go

Material Cost Variance = (Standard Quality for Actual Output*Standard Price)-(Actual Quantity*Actual Price)
MCV = (SQAO*STP)-(ACQ*ACP)

What is Material Cost Variance ?

Material Cost Variance is the comparison of the price and quantity based on the standard, planned, and actual costs. The materials price variance focuses on the price paid for materials, and it is defined as the difference between the actual quantity of materials purchased at the actual price and the actual quantity of materials purchased at the standard price. The difference between actual costs and standard (or budgeted) costs is typically explained by two separate variances namely the materials price variance and materials quantity variance. The materials price variance is the difference between actual costs for materials purchased and budgeted costs based on the standards. The materials quantity variance is the difference between the actual quantity of materials used in production and budgeted materials that should have been used in production based on the standards.

How to Calculate Material Cost Variance?

Material Cost Variance calculator uses Material Cost Variance = (Standard Quality for Actual Output*Standard Price)-(Actual Quantity*Actual Price) to calculate the Material Cost Variance, Material Cost Variance is a term used in cost accounting and financial analysis to measure the difference between the actual cost of materials used in production and the standard cost of those materials. Material Cost Variance is denoted by MCV symbol.

How to calculate Material Cost Variance using this online calculator? To use this online calculator for Material Cost Variance, enter Standard Quality for Actual Output (SQAO), Standard Price (STP), Actual Quantity (ACQ) & Actual Price (ACP) and hit the calculate button. Here is how the Material Cost Variance calculation can be explained with given input values -> 356725 = (425*855)-(95*70).

FAQ

What is Material Cost Variance?

Material Cost Variance is a term used in cost accounting and financial analysis to measure the difference between the actual cost of materials used in production and the standard cost of those materials and is represented as MCV = (SQAO*STP)-(ACQ*ACP) or Material Cost Variance = (Standard Quality for Actual Output*Standard Price)-(Actual Quantity*Actual Price). Standard Quality for Actual Output refers to the predetermined or expected quality level of the goods or services produced, based on established standards or specifications, Standard Price refers to the predetermined cost per unit of a particular material based on factors such as historical data, market prices, negotiated contracts, or internal cost estimates, Actual Quantity refers to the real amount or volume of a specific item, material, product, or resource used, consumed, produced, or acquired within a certain timeframe & Actual Price refers to the real cost per unit of a specific item, material, product, or resource that has been incurred within a certain timeframe.

How to calculate Material Cost Variance?

Material Cost Variance is a term used in cost accounting and financial analysis to measure the difference between the actual cost of materials used in production and the standard cost of those materials is calculated using Material Cost Variance = (Standard Quality for Actual Output*Standard Price)-(Actual Quantity*Actual Price). To calculate Material Cost Variance, you need Standard Quality for Actual Output (SQAO), Standard Price (STP), Actual Quantity (ACQ) & Actual Price (ACP). With our tool, you need to enter the respective value for Standard Quality for Actual Output, Standard Price, Actual Quantity & Actual Price and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

Home

FREE PDFs

🔍 Search