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Definition

Materials quantity variance

Materials quantity variance is the difference between the actual quantity times the standard price and the standard quantity times the standard price for materials.

The materials quantity variance is determined from the following formula.

(Actual Quantity * Standard Price) – (Standard Quantity * Standard Price) = Materials Quantity Variance (MQV)

There is an alternative formula to determined the materials quantity variance, such as

Standard price * (Actual Quantity - Standard Quantity)= Materials Quantity Variance (MQV)

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