Question

Material Usage Variance $=$ Material Mix Variance $+$ ___________.

• A. Material Yield Variance
• B. Material Cost Variance
• C. Material Price Variance
• D. Material Quantity Variance

Answer 1

The correct option is A Material Yield Variance

Material Usage Variance is the difference between the standard quantity specified for actual production and the actual quantity used at the standard purchase price.

This variance is a combination of material mix variance and material yield variance.