Materials yield variance
The materials yield variance measures the difference between actual output obtained and the standard output expected from the actual total input quantity, valued at the standard output cost; together with the mix variance it fully.
FrameworkMix and yield variances
See it move
From 1,000kg of input, the standard recipe expects 850kg of finished output. Actual production instead yielded only 820kg — a 30kg shortfall, valued at the standard cost per unit of output rather than the cost of the lost input. The gap points to spoilage, evaporation, or a process running below its rated conversion rate.
The formula
Variables
- actual output obtained from production during the period (units or kg)
- standard output expected from the actual total input (total actual input × standard yield ratio) (units or kg)
- standard cost per unit of finished output (€ per unit)
Positive result is favourable. Always paired with the mix variance; together they fully decompose the total materials usage variance when inputs can be blended in varying proportions.