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Former Member
May 17, 2010 at 02:13 AM

Usage Variance Vs Scrap Variance

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For a given component assume the component scrap is 10%

Example

Required quantity 100 pieces

Component scrap 10%

Scrap quantity 10 pieces

Therefore, 110 pieces are required.

On the process order/Production order.

If the goods issue is 130, how will we know: what is usage variance and what is our scrap variance?

Thank you

Ravi