In standard costing, the Material Yield Variance is calculated as:
A. (Standard Price - Actual Price) x Actual Quantity
B. (Standard Yield - Actual Yield) x Standard Cost per unit of Yield
C. (Actual Yield - Standard Yield) x Standard Cost per unit of Yield
D. (Actual Mix - Standard Mix) x Standard Price
Answer: Option B
Solution (By JKSSB Mock Tests)
Material Yield Variance measures the difference between the actual output and the standard output expected from the actual input. It is calculated as (Standard Yield - Actual Yield) x Standard Cost per unit of Yield. A positive value indicates a favorable variance.
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