What is Material Quantity ?
Material Quantity compares the actual and expected direct material used in manufacturing a product. An unfavorable material quantity suggests that more materials were used in production than anticipated, which could be due to factors such as waste, inefficiencies, or poor production planning. Conversely, a favorable material quantity indicates that fewer materials were used than expected, leading to potential cost savings. Analyzing material quantity helps management identify areas for improvement in production processes, inventory management, and resource utilization. It also provides insights into the effectiveness of production planning and control measures. However, similar to material price variance, it's essential to consider other factors that may influence material usage, such as changes in production methods or quality standards.
How to Calculate Material Quantity?
Material Quantity calculator uses Material Quantity = Standard Price*(Standard Quantity-Actual Quantity) to calculate the Material Quantity, Material Quantity is the difference between the actual amount of materials used and the amount that was expected to be used. Material Quantity is denoted by MQ symbol.
How to calculate Material Quantity using this online calculator? To use this online calculator for Material Quantity, enter Standard Price (STP), Standard Quantity (SQ) & Actual Quantity (ACQ) and hit the calculate button. Here is how the Material Quantity calculation can be explained with given input values -> 4275 = 855*(100-95).