Quantity variance is the sum of mix and yield variances
The Quantity (Efficiency or Usage) Variance is the difference between the actual material (labor) usage and the standard usage for this level of output, multiplied by standard price.
Quantity Variance = (Standard Quantity for Actual Output - Actual Output) * Standard Price, or
Quantity Variance = (SQ - AQ) * SP
When there is more than one input, we calculate Quantity (Efficiency) Variance for each input individually:
In this situation, the Quantity (Efficiency) Variance may be caused by two different factors:
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