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View Full Version : Mix and Yield variances


wordy
Sep 28, 2006, 07:17 AM
Is there a formula for calculating direct materials price and usage variance?

CaptainForest
Sep 28, 2006, 06:59 PM
Material Price Variance = Qa (Ps-Pa)
Where Qa is actual quantity used, Ps is standard/budget price and Pa is actual price

Material Efficiency Variance = Ps (Qs-Qa)
Where Ps is standard/budget price, Qs is budget quantity, and Qa is actual quantity used