# Calculation of Materials Yield Variance

The material yield variance is calculated as the difference between the amount of finished product expected from a given amount of raw materials and the standard amount expected to be used, and multiplied by the standard cost of the equipments. The formula is:

(Actual unit usage – Standard unit usage) x Standard cost per unit = Material yield variance

Materials Mix and Yield Variance: Learning Objective of the article: Define and explain materials mix and yield variances. What are the formulas of materials mix and yield variances? Calculate materials mix and yield variance. Price and quantity variances of direct materials are explained on