Tutors on net
Tutors on NetTutors on Net

Quantity Variances

Quantity Variances Assignment / Homework Help
Quantity variances are basically of two types, Material Usage Variance and Labor Efficiency Variance. Quantity variance measures the difference between the actual usage (both of materials and labor) and the standard usage for a given level of output. We shall discuss the two quantity variances and their possible causes in greater detail.

Material Usage Variance

The formula to compute material usage variance is fairly simple. The starting point is to compare the actual usage of materials for a given level of output with the standard usage set for the same level of output. This difference must be multiplied by the standard price fixed for the material. This would give us the total material usage or quantity variance. It is expressed as:

(SQ AQ) * SP

Where:

SQ is Standard Quantity
AQ is Actual Quantity
SP is Standard Price

If the actual usage of materials is higher than the standard usage, we have an adverse (A) variance. In case of the opposite scenario, the variance is called favorable (F).

The possible causes for this variance to occur may include usage of inferior quality of materials, careless handling of materials, pilferage, changes in the methods of production, etc. It must be noted that material usage variance must be calculated separately for each type of material used in the production process.

Example:
If a company producing 100 shirts must use 275 meters of cloth (standard usage) but actually uses 285 meters of cloth, we have an adverse quantity variance of 10 meters. This quantity multiplied by the standard cost per meter of cloth (assuming it to be $30 per meter) results in a total material usage variance of $300.


Online Live Tutor Quantity Variances:

We have the best tutors in accounts in the industry. Our tutors can break down a complex Quantity Variances problem into its sub parts and explain to you in detail how each step is performed. This approach of breaking down a problem has been appreciated by majority of our students for learning Quantity Variances concepts. You will get one-to-one personalized attention through our online tutoring which will make learning fun and easy. Our tutors are highly qualified and hold advanced degrees. Please do send us a request for Quantity Variances tutoring and experience the quality yourself.

Online Quantity Variances Help:

If you are stuck with a Quantity Variances Homework problem and need help, we have excellent tutors who can provide you with Homework Help. Our tutors who provide Quantity Variances help are highly qualified. Our tutors have many years of industry experience and have had years of experience providing Quantity Variances Homework Help. Please do send us the Quantity Variances problems on which you need Help and we will forward then to our tutors for review.