The material quantity variance is computed based on the quantity of all materials purchased during the period.

Material Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit.

Standard Costing

An accounting method that uses predetermined costs for product costing, performance evaluation, and decision making.

Labour Efficiency Variance

A metric that measures the difference between the actual labor hours used in production and the standard or expected hours, often indicating labor performance.