Material Yield Variance (MYV)
Material yield variance is defined as the portion of material usage variance that results from the difference between the standard yield (output) specified and the actual yield or output obtained. The material yield variance is different from other material variances in the sense that all other variances are based on input but it is based on output. The material yield variance can be calculated by using following formula:
Material yield variance (MYV) = (AY - SY) x SC
Where,
AY = Actual yield or output
SY = Standard yield or output
SC = Standard cost per unit
If the resulting figure is positive, it is considered as favorable and if the resulting figure is negative, it is considered unfavorable.
Note: Please see the post " Calculation Of Direct Material Variances" for the calculation process of Material Yield Variance (MYV)
