Material usage variance (muv), Cost Accounting

Material Usage Variance (MUV):

This is the variation between the actual quantity of material consumed and standard quantity which should have been consumed, expressed in terms of the standard price of the material.

MUV = Standard price (Standard quantity for actual production - Actual quantity used)

Reasons for usage variance may be

  • Carelessness in the use of material
  • Defective material
  • Wastages caused by bad methods or bad workmanship
  • Non-standard mix of materials used
  • vary in the quality of materials used
Posted Date: 10/15/2012 7:25:20 AM | Location : United States







Related Discussions:- Material usage variance (muv), Assignment Help, Ask Question on Material usage variance (muv), Get Answer, Expert's Help, Material usage variance (muv) Discussions

Write discussion on Material usage variance (muv)
Your posts are moderated
Related Questions
ANNUAL DEMAND = 2400 UNITS ORDERING COST PER UNIT = RS.4.00/- UNIT PRICE = RS 2.40/- STORAGE COST = 2% P.A INTEREST RATE = 10 % P.A LEAD TIME = HALF MONTH CALCULATE ECONOMIC ORDER

What are the four elements of the budgeting cycle?

Disadvantages of Standard Costing 1. The system of standard costing is very expensive to install : A lot of money is spent in studying output requirements in terms of materia

Physical Measure and Net Realizable Value Physical Measure/Unit Joint costs are assigned to the joint products according to the ratio of physical measurement of the outpu

Question: Suppose that the stock now sells at $80, and the price will go up by 5% or down by 5% at the end of first six month (t = ½).  Then, the price will either go up by 10%


Q. A firm uses capital and labor to produce a single output good. The production function is given by F(K, L) = K 2 L where K is the amount of capital and L is the amount of labo

You have recently graduated from VU and are now working for a small accounting firm. The firm recently purchases MYOB software for internal use. Upon learning that you had learnt M

EARNINGS AFTER TAX-1500000 NUMBER OF EQUITY SHARE OUTSTANDING-300000 DIVIDEND PAID 600000 PRICE-EARNING RATIO-101 RATE OF RETURN ON INVESTMENT-20% WHAT IS OPTIMUM DIVIDEND PAY OUT

This is difficult to perceive cash maintained in the vault as an investment. Fairly, you would be thinking that if we invest cash, then how can cash itself be an investment? Howeve