Direct Material Yield Variance

Direct material yield variance is the artifact of the standard assess apiece component of express material and the difference concerning standard quantity of express material permissible representing genuine production and the standard mix quantity of express material. Standard mix quantity is the sum quantity of two or more types of express resources which, if miscellaneous in the standard ratio, would declare been consumed on the genuine quantity of the artifact produced. Direct material yield variance can be calculated just representing a artifact made from two or more express resources. The formula is:

DM Yield Variance = ( SQ − SM ) × SP

Where,

SQ is the standard quantity of express material

SM is the standard mix quantity of material used

SP is the standard assess apiece component of express material used

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Direct Material Mix Variance

Direct material mix variance is the artifact of the standard assess apiece component of express material and the difference concerning standard mix quantity and genuine quantity of express material used. Standard mix quantity is the quantity of a regard express material which, if miscellaneous with single of more uncommon resources in a standard ratio, would declare been consumed on the genuine quantity of a artifact produced. Direct material mix variance can be calculated just representing a artifact having two or more input resources. The formula is:

DM Mix Variance = ( SM − AQ ) × SP

Where,

SM is the standard mix quantity of express material

AQ is the genuine quantity of material used

SP is the standard assess apiece component of express material used