Material Mix Variance | Variance Analysis | Standard Costing
Material Mix variance (MMV) is the difference between the actual composition of Mixture and the standard mixture. During the production process, if the materials are not actually placed into production in the same ratio as the standard mixture ratio then this will result in MMV.
MMV is the deviation of the ratio of actual quantity of different materials used from the standard ratio of the mixture of different materials used The deviation is converted into monetary value at standard price. This type of deviation is mostly found in industries such as textiles, rubber and chemicals ,etc.
Material Mix Variance Formula
- RSQ# = Revised Standard Quantity = (Standard Quantity of a Mix * Total Quantity of mix)/ Total Standard Quantity of Mix
- SP = Standard Price
- AQ = Actual Quantity