Usage Variance

Usage Variance

The difference between estimated inputs in a production process and actual inputs, multiplied by their cost, over a period of time. For example, suppose a company expects to use 1,000 hours of work at $5 per hour each week. If it needs to pay for 1,200 hours in week one, its usage variance is $1,000 ([1,200 - 1,000] * $5). Likewise, if it only needs to pay for 700 hours in week two, its variance is -$1,500 ([700 - 1,000] * $5). Obviously, negative usage variance reduces costs while positive variance increases them.
References in periodicals archive ?
and material usage variance Actual output did use 35,000kg Actual output should have used: 9,000 units x 4kg 36,000kg Operational usage variance 1,000kg (F) Material usage variance: 1,000kg x $25/kg $25,000 (F)
Average Factory Performance Metrics DEFINITION OF MEAN CLASS PERFORMANCE MATURITY CLASS Best in Class: * On-time delivery at 96% with a 14% improvement (top 20% of year-over-year aggregate * Throughput at 93% with an 8% improvement performance year-over-year scorers) * Stock outs at 3 averaged per line per week with a 37% improvement year-over-year * Direct material usage variance at 2.
However, usage variance among members ranged from 1% to 18% by credit union.
26 port meeting, the port's attorney Peter Fraley said the Tramps received a usage variance to the industrial park's covenants, conditions and restrictions (CC&R's) to allow the hotel operation when they purchased 4 acres on Penny Road between Chester Kimm Road and Euclid Avenue in 2005.
Built on the Summit Platform, Summus Asset Management is the ITAM component of the Summus IT Management Suite, and provides the following CSS(O)-compliant capabilities: white-list/black-list software inventory, centralized uninstall of black-listed software, software usage metering, end-user usage variance reporting and alerts, automated linkage of software installations and provisioning requests to compliant license inventory.
This meant that there was a duplication of variances, because the material usage variance is a combination of the material mix variance and the material yield variance.
For example, if material usage variances are high and equipment usage is high, it may appear as if the asset is near failure, in this case however, excessive energy usage could simply be due to poor material or formula quality and the equipment is performing properly.
Our goal is to increase NOI by driving usage variances to zero," Apostolos says.
4 million of unfavorable material cost and usage variances and a $0.
The computer system tracks and reports the material and labor usage variances.