A machine that was out of alignment caused several units of product to be scrapped.
An actual vs expected direct material variance contrasts the two types of materials utilized in the production of a product. When you use more material than you expected, this is referred to as an unfavorable materials quantity variance. Utilizing less material than anticipated is advantageous.
One of the cost accounting metrics that firms evaluate to gauge manufacturing efficiency is the variance in material quantities. Monitoring variations enables producers to spot problems as they arise and fix them. It also sharpens the accuracy of future production budgets.
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