HesapHanem

Material Yield Variance Calculator

Enter the standard and actual input quantities and the standard unit price to find the yield variance.

Result

-$150.00
-60.00 units

How it is calculated

The tool compares the input quantity the standard allowed for the output achieved with the quantity actually used, and prices the difference at the standard price: variance = (standard input − actual input) × standard price. Standard input is the quantity the standard allows for the actual output, not for the planned output. Actual input and the standard price per unit are in the same unit as the allowance. Be careful with the sign in this tool. A negative variance means more material was used than allowed, which is unfavourable, and a positive variance means less was used, which is favourable. It also shows the quantity difference standard − actual. Zero or negative inputs are not rejected. Only the quantity effect is calculated, not any price difference.

Worked example

The standard allows 1,000 kg of material for the output achieved, the standard price is 2.5 per kg, and 1,060 kg was actually used. The quantity difference is 1000 − 1060 = -60.00 units. Multiplying by the standard price gives -60 × 2.5 = -$150.00. The negative sign means 60 kg more than the standard allowed was used, an unfavourable result worth 150 at standard prices. If only 940 kg had been used, the same calculation would give +60 units and $150.00, a favourable variance.

Try this example →

Common mistakes

  • Reading the sign the wrong way round: here a negative variance is unfavourable (over-use of material) and a positive one is favourable.
  • Entering the standard quantity for the planned output instead of for the output actually achieved; the allowance must be flexed to actual output before comparing.
  • Using the actual purchase price instead of the standard price, which mixes the price variance into the yield variance.
  • Entering input quantities in different units, such as standard input in kilograms and actual input in tonnes.
  • Treating a small variance as proof of efficiency; a favourable figure may reflect lower quality, undercounted usage or a standard that is set too loose.

Sources

About this calculator

Material yield variance measures the cost impact of using more or less input material than the standard allows: yield variance = (standard quantity allowed − actual quantity used) × standard price. A positive result means less material was consumed than the standard allows for the output achieved, a favorable variance; a negative result is unfavorable, meaning more material was used. Textbooks such as OpenStax Principles of Accounting write the materials quantity variance the other way round, (actual − standard) × standard price, where a positive figure is unfavorable: the amount is the same, only the sign is flipped.

Cost and management accountants in manufacturing calculate this as part of standard costing and variance analysis, isolating whether a poor month's material cost was driven by paying a different price (price variance) or by using an unexpected amount of material relative to output (yield variance) — the latter often points to scrap, spoilage, or process inefficiency on the shop floor.

Was this helpful?

You can pick up to 3 reactions.

Comments (1)

  • Editorial team

    This figure is only the quantity half of the story. The price half is separate: (actual price − standard price) × actual quantity. Take 1,060 kg used against 1,000 allowed, a standard price of 2.50 and an actual price of 2.60. The yield variance is −150.00 and the price variance is 106.00 unfavourable, which together explain the 256.00 gap between 2,756.00 spent and 2,500.00 allowed. Is your standard set per unit of output or per batch?

Popular calculators

Loan Calculator

Monthly payment, total interest and full amortization schedule.

Percentage Calculator

Percent change, percent of, and ratio calculations.

Discount Calculator

Calculate final price, savings, and discount amount.

BMI Calculator

Body mass index from height and weight (metric or imperial).

Age Calculator

Compute your exact age in years, months and days from a birth date.

Compound Interest Calculator

Calculate the final amount and interest earned with compounding.

All Calculators