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If the materials price variance is $4100 f and the materials quantity and labor variances are each $3000 u, $900 F is the total materials variance.
The difference between an item's predicted cost and its actual cost at the moment of purchase is referred to as price variance in cost accounting. The number of products ordered has a significant impact on an item's pricing, and this is taken into account.
Price variance is calculated by multiplying the number of actual units actually purchased by the actual unit cost of the item less its standard cost. The estimated or planned cost of an item based on engineering or production data is known as its standard cost.
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