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- The raw material price variance is the difference between the actual and budgeted cost to acquire materials12. It is used to identify instances where a business may be overpaying for components.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.The materials price variance is the difference between the actual and budgeted cost to acquire materials, multiplied by the total number of units purchased. The variance is used to spot instances in which a business may be overpaying for and components.www.accountingtools.com/articles/materials-price-v…The materials price variance is the discrepancy between the calculated projections of a material's cost and the actual cost of that material.priceva.com/blog/price-variance
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