Favorable quantity variances result from using less food than anticipated, given the number of meals served.
Quantity Variance = SP (SQ - AQ), or $8.534 (921.02 - 975) ($461) Unfavorable ($373)
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.
Then we calculate the Direct Labor Price and Quantity Variances by subtracting the products as shown in row 8 of Figure 3.
Bob's ended up with unfavorable quantity variances for all raw materials primarily because of its new workforce.
In his report Mr Arnold said: "The consistent use of purchase order numbers by suppliers, the handling of price and quantity variances
by Central Payments and authorisers in directorates, disciplines of running maintenance processes in Voyager to clear price and quantity variances
, and understanding the difference between rejecting and referring an invoice were cause for concern.
Materials quantity variances are normally the responsibility of which department?
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).
As mentioned above, the Sales Effect Variance is the sum of the pattern and quantity variances
. As can be seen from Table 2, these component variances sometimes offset and sometimes reinforce each other.
Sales Volume, Sales Mix, and Sales Quantity Variances
Price and resource quantity variances
are also highly influential and are reported individually although the cost center manager may not personally be responsible for purchase price variance.