Reasons of Favorable Material Usage Variance

Reasons of Favorable Material Usage Variance

Favorable material usage variance would be achieved, when the actual material used in the production is lower than standard usage. This can be achieved by introducing and implementing following measures

1.    High Quality Material

Use of high quality material would lower the material wastage, and this would result in favorable material usage variance.

2.    High Skilled Labour

Use of high skilled labour would also achieved favorable material usage variance, because material would be handled more carefully by the skilled people.

3.    Training of Labour

Material handling training of labour would also improve material handling, thus such training would helps in achieving favorable material usage variance.

4.    Advance Technology

Use of advance machinery & technology would help in improving material handling and reducing the material wastage. Thus a favorable material usage variance can be achieved.