direct material usage variance

Definition

The difference between the amount of material that was required to make a product and the amount of material that was budgeted to make the product. For example, if 100 units of product each required 100 pounds of metal, the budgeted direct material usage would be 10,000 pounds of metal. If the actual amount of metal used for 100 units was 11,000, the direct material usage variance was an overrun of 1,000 pounds. If the price of a pound of metal was $5, the overrun would cost $5,000. See also direct material variance.

单词	direct material usage variance
释义	direct material usage variance Definition The difference between the amount of material that was required to make a product and the amount of material that was budgeted to make the product. For example, if 100 units of product each required 100 pounds of metal, the budgeted direct material usage would be 10,000 pounds of metal. If the actual amount of metal used for 100 units was 11,000, the direct material usage variance was an overrun of 1,000 pounds. If the price of a pound of metal was $5, the overrun would cost $5,000. See also direct material variance.
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