Understanding the Complicated Theory of Direct Material Variance

Why should you opt for our expertise?

When you decide to look for direct material variance homework help, you will not be able to find sufficient information. At myhomeworkhelp.com we understand the difficulty of trying to go through multiple text books to find what you need, which is why we offer you precise, accurate and 100% original information at a very minimal cost.

All you have to do is drop your homework off with us and we will be sure to hand it back to you before your date of submission. We offer you a way to stay on top of your classes, as well as, keep up with other aspects of your life. If you ever have any doubts and queries about direct material variance assignment help, stop by and interact with our professional panel at myhomeworkhelp.com.

What is direct material variance?

To understand this topic, even with direct material variance homework help, it is important that you first understand standard costing. Standard costing is the broad heading under which all variance falls. When company accountants are trying to formulate a budget they use the standard costing of items instead of actual costs since that information is not easy to gather at the time. Standard costing allows a company to exercise cost control in order to maximise their funds and resources, and minimize their losses.

There are times when the actual cost of labour or raw material does not match the estimate or standard cost; this is known as variance. When the actual costs exceed standard costs it is unfavourable variance, and when the actual cost is lower it is favourable variance. This topic can get confusing, so it is important that you find direct material variance assignment help, which breaks up the topic into simple to understand parts.

Types of direct material variance

As you go through the direct material variance homework help that you avail of you will notice that the topic has been segregated into different parts. It is necessary that you have a basic understanding of each section.

They are as follows:

  • Direct material price variance

To put it simply, price variance refers to the amount of actual product that is used and the difference between the standard cost of this product and the actual cost. The formula for this is rather simple:

Direct material price variance = (standard cost – actual cost) x actual quantity


DM price variance = (SC – AC) x AQ

Calculating this sort of variance helps establish the efficiency of a purchasing department in terms of obtaining material at low rates.

  • Direct material quantity variance

The quantity variance refers to the standard price of the direct material and the difference between the standard quantity that is allowed by the department and the actual quantity used in production. In other words,

Direct material quantity variance = (standard quantity – actual quantity) x actual cost


DM quantity variance = (SQ – AQ) x AC

There are other subdivisions you will come across in your direct material variance assignment help.

This includes:

  • Direct material mix variance
  • Direct material yield variance

However, the most beneficial ones to remember are direct material price quantity variance. So, come to our website and get help from us.

Submit Your Assignment


Customer Reviews

My Homework Help
Rated 5.0 out of 5 based on 510 customer reviews at
Rating View

Trusted Reviews from Google

Trusted Reviews from trustpilot