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For this situation, the calculation of total manufacturing cost is as follows: 1  Direct materials. 2  Add the total cost of materials purchases in the period to the cost of beginning inventory, and subtract the cost of ending inventory.3  The result is the cost of direct materials incurred during the period. 4  Direct labor. Direct materials. 2  Add the total cost of materials purchases in the period to the cost of beginning inventory, and subtract the cost of ending inventory. 3  The result is the cost of direct materials incurred during the period. 4  Direct labor.
the difference between the actual hourly rate paid and the standard hourly rate multiplied by the actual hours worked. direct materials price variance. the difference between the actual price paid per unit of materials and the standard price allowed per unit multiplied by the actual quantity of materials purchased. the difference between the direct materials actually used and the direct materials allowed for actual output multiplied by the standard price.