Direct materials yield variance
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Direct materials yield variance is the difference between (1) budgeted cost of direct materials based on the actual total quantity of direct materials used and (2) flexible-budget cost of direct materials based on the budgeted total quantity of direct materials allowed for the actual output produced.
Definitions
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Direct materials yield variance. The difference between (1) budgeted cost of direct materials based on the actual total quantity of direct materials used and (2) flexible-budget cost of direct materials based on the budgeted total quantity of direct materials allowed for the actual output produced.
