Materials Quantity Variance Definition

Materials Quantity Variance Definition:

Direct materials quantity variance is a measure of the difference between the actual quantity of materials used in production and the standard quantity allowed, multiplied by the standard price per unit of materials.

Direct materials quantity variance is also known as Direct materials efficiency variance and Direct materials usage variance.

Formula or Equation of Direct Materials Quantity Variance:

[Materials quantity variance = (Actual quantity used × Standard price) − (Standard quantity allowed × Standard Price)]

Learn More About Direct Materials Quantity Variance:

  • What is the purpose of calculating this variance?
  • What is the formula of materials quantity variance?
  • What is the significance of direct materials quantity variance?
  • Who is responsible for unfavorable variance?
  • Examples of materials quantity variance.

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