 general rules for computing cost variance. Now these rules will make more sense once we apply them to practice, but you'll note as we go through the practice problems, this will be kind of the questions that we often come up will get to will go to the calculations and we'll say hey, it makes sense. And then we'll get to this kind of items and we'll say I'm not sure which one to use here. And these are going to be the general rules that will then see how they apply once we go through those problems. One, when computing price variance, the difference between the actual price and the standard price what we kind of thought it should be compared to what actually happened, the quantity actual is held constant. So we're going to help hold the quantity then constant as we look at the price variance because we're trying to figure out what the difference in the price variance is and therefore we need to hold the quantities constant. Two, when computing quantity variance, so difference between the actual quantity and the standard or that what we thought should be the quantity should be the price standard is held constant. So then we got to hold the price variance because of constant because now we're focusing in on the quantity we're trying to see the difference in quantity and therefore need to hold the price constant and we'll have the standard in that situation. Three, the cost variance or total variance is the sum of the price and quantity variance. So in other words, we're considering the total difference, the total change. And that's the you can imagine again the the financial statements versus what we budgeted them to be on things like direct material and direct labor. If we take direct material, see a difference from the actual to what we budgeted should happen on the budgeted financial compared to the actual financials that then can be broke down to its components and the components parts will then add together to come to get to that total variance. So the cost variance or total variance is the sum of the price and quantity variances. Now we'll go over some alternative types of computations these could be a little bit longer but they could make more sense in some ways so it's it's useful to look at them. The price variance or PV equals the actual price AP minus the standard price SP we take all of that times the actual quantity. In other words, if we took the present the price variance equals the actual price minus the standard price multiply that times the actual quantity will work some problems in this format as well. So the quantity variance qv equals bracketed actual quantity aq minus the standard quantity sq times the standard price SP. Once again, in terms of just the letters quantity variance equals bracketed actual quantity minus standard quantity times the standard price.