Material yield variance
The material yield variance measures the output or input-efficiency effect after separating material mix. On an input basis, compare standard total input allowed for actual output with actual total input, valued at the weighted standard cost per input unit. An equivalent output approach can be used consistently. It focuses on how much good output is obtained from the resources consumed and reconciles with mix to explain total usage variance.
Worked example
Standard mix costs $2.40 per input kg and expected yield is 90%. Actual good output 90 kg allows 100 kg input; actual input 110 kg gives yield variance (100 − 110) × $2.40 = $24 adverse.
Common mistake
Do not value an output-quantity difference using a cost per input unit without converting consistently for the standard yield.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | PM | Direct | September 2026–June 2027 |