... From Page M:9 
A Problem  
An output of 9,500 units is to be achieved using 900 kgs of Material A @ Rs. 15 per kg, 800 kgs of Material B @ Rs. 45/kg and 200 kgs of Material C @ Rs. 85 per kg. 22,800 units were actually manufactured using 2,250 kgs of Material A @ Rs. 16 per kg, 1,950 kgs of Material B @ Rs. 42/kg and 550 kgs of Material C @ Rs. 90 per kg.
The problem data arranged in a working table:
The total quantity of materials used As per Standard :: 900 kgs + 800 kgs + 200 kgs = 1,900 kgs. Actually :: 2,250 kgs + 1,950 kgs + 550 kgs = 4,750 kgs. What is the variation in total cost on account of variation in the output/yield achieved from the actual input? This information is provided by the material yield variance.

The Formulae » Material Yield/SubUsage Variance (MYV/MSUV)  
That part of the variance in the total cost of materials on account of a variation in the yield or output obtained from the materials used i.e. the standard output that should have been achieved for the actual input (i.e. AQ_{Mix}) and the actual output/production/yield.
It is a part of the material Usage/Quantity Variance. It is a sub part of the Cost Variance. It is also called "Material SubUsage Variance" (MSUV). It is the difference between the Standard Cost of Actual Output and the Standard Cost of Standard Output for Actual Input.
NoteThe Material Yield Variance is calculated for all the materials together and cannot be used for each individual material.This formula when applied for each material separately works as the alternative formula for Material Usage/Quantity Variance for each individual material. 
MYV/MSUV » Formula interpretation  
This formula can be used in all cases i.e. both when AQ_{Mix} = SQ_{Mix} as well as when AQ_{Mix} ≠ SQ_{Mix}. When AQ_{Mix} ≠ SQ_{Mix}, AQ_{Mix}/SQ_{Mix} works as an adjustment factor to readjust the Standard Output to Standard Output for Actual Input.

Solution [Using the data as it is]  
For working out problems with the data considered as it has been given without having to do any recalculations, use the above formulae (which are capable of being used in all cases)
Consider the working table above:

Solution [Using recalculated data]  
Where you find that the SQ_{Mix} ≠ AQ_{Mix}, you may alternatively recalculate the standard to make the SQ_{Mix} = AQ_{Mix} and use the figures relating to the recalculated standard in the working table. In such a case, the formulae that you use would look simpler (without the adjustment factor AQ_{Mix}/SQ_{Mix}).
From the data relating to the problem, it is evident that SQ_{Mix} ≠ AQ_{Mix}. Thus we recalculate the standard data for Actual Input [Refer to the calculations]. Consider the recalculated standard data and the actual data arranged in a working table.
Note:This formula can be used only when AQ_{Mix} = SQ_{Mix}.You don't need to recalculate the standardThe formula with the adjustment factor AQ_{Mix}/SQ_{Mix} can be used in all cases i.e. both when AQ_{Mix} = SQ_{Mix} and AQ_{Mix} ≠ SQ_{Mix}. Therefore, you don't need to rebuild the working table by recalculating the standards for the purpose of finding the variances.Check:The same problem was solved in both the cases above. The only difference being that in the second case, the data was considered by recalculating the Standard for Actual Input to make AQ_{Mix} = SQ_{Mix}. 
Formulae using Interrelationships among Variances  
VerificationThe interrelationships between variances would also be useful in verifying whether our calculations are correct or not. After calculating all the variances we can verify whether
We used the same set of data in all the explanations. Using the figures obtained for verification.
We can assume our calculations to be correct. 
Who is held responsible for the Variance?  
Since this variance is on account of more or less yield for the input used, the people or department responsible for producing the product (say manufacturing department) can be held responsible for this variance.

Alternative Formula  
The Total Material Yield/SubUsage Variance is the difference between the Standard Cost of Standard Materials for Actual Output and the Standard Cost of Actual Input.
Material Yield/SubUsage Variance = Standard Cost of Standard Quantity for Actual Output − Standard Cost of Actual Quantity
Note
Note

Solution [Using the data as it is]  
For working out problems with the data considered as it has been given without having to do any recalculations, use the above formulae (which are capable of being used in all cases)
Consider the working table above:
Using

Solution [Using recalculated data]  
Where you find that the SO ≠ AO, you may alternatively recalculate the standard to make the SO = AO and use the figures relating to the recalculated standard in the working table. In such a case, the formulae that you use would look simpler (without the adjustment factor AO/SO).
From the data relating to the problem, it is evident that AO ≠ SO. Thus we recalculate the standard data for Actual Output [Refer to the calculations]. Consider the recalculated standard data and the actual data arranged in a working table.

Author Credit : The Edifier  ... Continued Page M:11 