Quantity Variance

Quantity Variance

The difference between sales actually made and the estimated sales, multiplied by the sales price, over a period of time. For example, suppose a company expects to sell 1,000 units at $5 per unit each week. If it sells 1,200 units in week one, its quantity variance is $1,000 ([1,200 - 1,000] * $5). Likewise, if it only sells 700 in week two, the variance is -$1,500 ([700 - 1,000] * $5).
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For example, in Exhibit 3, students set the standards per unit for materials at two pounds at $7 per pound and then stated that 1,800 pounds of materials were used to produce four units such that the Materials Quantity Variance was
The food quantity variance is the responsibility of the production personnel.
Now we can calculate a price and quantity variance for each of Bob's materials.
Supply Chain Integrator provides exceptions on part priority change, past due confirmation of release items, shipping quantity variance, item specification management, no shipment notice, and requested quantity change.
The quantity variance is determined by multiplying the standard price for the materials times the difference between the quantity expected to be used for the number of products made (200 ounces) and the actual quantity used (250 ounces).
We are not concerned here with whether more or fewer units were sold than the number budgeted, since this is monitored by the sales quantity variance.
The authorized report shows a total input variance of $15,300, comprising a favorable quantity variance of $1,200--1 hours x $120--due to 10 fewer water truck hours consumed and an unfavorable input price variance due to the price increase of the sanitation service--$ 16,500 (1,650 hours x $10).
If the scenario involves a firm selling multiple products and/or a product that requires a mix of different inputs, you should calculate sales mix and sales quantity variances and/or material mix and yield variances.
Corcentric solutions for the retail industry enable retail finance professionals to manage unique challenges such as managing multiple store locations that need to receive and approve invoices, providing invoice approval workflow for different levels of authority from store to store, handling frequent price and quantity variances that slow down the three way matching process, accelerating invoice processes despite delays in receiving goods, and meeting tight store opening deadlines for new store expansions that require efficient handling of inventory and non-inventory related invoices.