Price variance: It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual. Quantity variance: It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product. To calculate: P P’s direct materials price and quantity variances.

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Chapter 9, Problem 6E

To determine

Concept introduction:

Price variance:

It is the difference between price per unit in standard and actual price of product and multiplying that with quantity purchased in actual.

Quantity variance:

It is referred to the amount which is computed by multiplying the standard price per unit with the difference between quantity in actual term and standard term of product.

To calculate:

P P’s direct materials price and quantity variances.

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