We use a Manufacturing Variance Calculation different from OPM. In our calculation, the theoretical production quantity is computed as follows:
Divide actual quantity by the standard quantity per costing formula. So, if the actual batch quantity is 300 and the formula weight per output is 1.2 (1200 lbs of ingredients to produce 1000 lbs of finished product per costing formula), then the theoretical quantity is 250 (300/1.2). Planned quantity per production formula is 400. The variance "per us" is favourable by 400 - 250 (Planned - Theoretical) = 150 instead of 400 - 300 (Planned - Actual) = 100.
Is there a way similar to Oracle GL's STAT accounts to use our calculation instead of standard Oracle. We are only looking at our options, not saying this calculation is correct.