SQ= STANDARD QUANTITY FOR ACTUAL CONSUMPTION. SP= STANDARD MATERIAL PRICE. AQ= ACTUAL QUANTITY CONSUMED. AP= ACTUAL MATERIAL PRICE. RAQ= REVISED ACTUAL QUANTITY.i.e ACTUAL QUANTITY RE-WRITTEN IN STANDARD PROPORTION.
MCV = MATERIAL COST VARIANCE. MPV = MATERIAL PRICE VARIANCE. MUV = MATERIAL USAGE VARIANCE. MMV = MATERIAL MIX VARIANCE. MSUV = MATERIAL SUB USAGE VARIANCE.
25 November 2009
in material usage variance the method is (SQ-AQ)SP IN THIS METHOD WHY WE USE STANDARD PRICE BUT IN MATERIAL PRICE VARIANCE WE USE (SP-AP)AQ WHY WE USE ACTUAL QTY PLEASE REPLY
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