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    Formula List of Basic Variance PDF

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    Shi Yan L
    The document defines various types of variances used to calculate differences between actual and standard costs and revenues, including: material price, usage, and mix variances; labor rate, efficiency, idle time, and mix variances; variable and fixed overhead expenditure and volume variances; sales price and volume variances; and planning and operating variances for materials, labor, and sales. Formulas are provided for calculating each variance.

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    © All Rights Reserved
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    Formula List of Basic Variance PDF

    Uploaded by

    Shi Yan L
    66 views4 pages
    The document defines various types of variances used to calculate differences between actual and standard costs and revenues, including: material price, usage, and mix variances; labor rate, efficiency, idle time, and mix variances; variable and fixed overhead expenditure and volume variances; sales price and volume variances; and planning and operating variances for materials, labor, and sales. Formulas are provided for calculating each variance.

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    Formula List of Basic Variance.pdf

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    The document defines various types of variances used to calculate differences between actual and standard costs and revenues, including: material price, usage, and mix variances; labor rate, efficiency, idle time, and mix variances; variable and fixed overhead expenditure and volume variances; sales price and volume variances; and planning and operating variances for materials, labor, and sales. Formulas are provided for calculating each variance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    66 views4 pages

    Formula List of Basic Variance PDF

    Uploaded by

    Shi Yan L
    The document defines various types of variances used to calculate differences between actual and standard costs and revenues, including: material price, usage, and mix variances; labor rate, efficiency, idle time, and mix variances; variable and fixed overhead expenditure and volume variances; sales price and volume variances; and planning and operating variances for materials, labor, and sales. Formulas are provided for calculating each variance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    Basic & Mix & Yield Variances formula

    Cost variance
    Variance Formula
    Material
    Price variance = (Actual price – Std price) x Actual Qty
    purchased
    = (AP – SP) x AQ
    Usage variance = (Actual Qty – Std Qty) x Std price
    = (AQ – SQ) x SP
    Mix variance = (Actual qty at actual mix – Actual qty at std
    mix) x Std price
    = (AQ.AM – AQ.SM) x SP
    Yield variance = (Actual yield – Std yield) x Std material cost
    Output = (AY – SY) x SC

    Labour
    Rate variance = (Actual rate – Std rate) x Actual hrs. paid
    = (AR – SR) x Ahrpaid
    Efficiency variance = (Actual hrs worked – Std hrs) x Std rate
    = (AH – SH) x SR
    Idle time variance = (Actual hrs paid – Actual hrs worked) x Std rate
    = (Ahrpaid – Ahrworked) x SR
    Mix variance = (Actual hours at actual mix – Actual hrs at Std
    mix) x standard rate
    = (Ahr.AM – Ahr.SM) x SR
    Yield variance = (Actual yield – std yield) x Std labour cost
    = (AY – SY) x SC

    Variable Overhead
    Expenditure variance = (Actual VOHR – Std VOHR) * Actual hours
    = (AVOHR - SVOAR) * AH
    Efficiency variance = (Actual hrs – Std hrs) x Std VOH rate
    = (AH – SH) x VOAR

    Fixed overhead
    Expenditure variance = Actual FOH – Budgeted FOH
    = AFOH – BFOH
    Volume variance (output): = (Budgeted Output – Actual Output) * SFOHC/u

    (input): = (Budgeted hours – Standard hours) * SFOHR/h


    = Budgeted FOH – (SH x SFOAR/h)
    = BFOHC – (SH x SFOAR/h)
    Volume capacity variance = Budgeted FOH – (actual hrs x std FOAR)
    = BFOH – (AH x FOAR)
    Volume efficiency variance = (Actual hrs – Std hrs) x Std FOAR
    = (AH – SH) x FOAR
    Breakdown of Volume capacity and volume efficiency variances

    Actual output (AO) Actual output (AO) Budgeted output (BO)


    __________________________________________________________________________

    [SH/u * AO]*SFOHR [AH/u * AO]*SFOHR [SH/u * BO] * SFOHR


    = SH*SFOHR = AH * SFOHR = BH * SFOHR

    Efficiency variance Volume variance

    Volume variance

    Basic Sales Variances Formulas


    Sales variance
    Method Formulas
    Turnover
    Price variance = (Actual SP – Std SP) x Actual Volume sold
    = (ASP – SSP) x AV
    Volume variance = (actual Volume sold – budgeted sales volume) x
    Std SP
    = (AV – BV) x SSP

    Profit Margin
    Price variance = (actual profit per unit – std profit per unit) x Actual
    volume sold
    = (APU – SPU) x ASV
    Volume variance = (actual volume sold – budgeted sales volume) x Std
    Profit per unit
    = (ASV – BSV) x SPU

    Contribution Margin
    Price variance = (Actual Contr. Margin per unit – Std . Contr.
    Margin per unit) x Actual sales volume
    = (ACMU – SCMU) x ASV
    Volume variance = (Actual volume sold – budgeted sales volume) x
    Std unit contribution
    = (ASV – BSV) x SCMU
    Planning & Operating Variances Formulas

    Planning variance:
    Cost item:
    If revised Std > Original Std = Adverse
    If revised Std < Original Std = Favorable

    Revenue item:
    If revised Std > Original Std = Favorable

    Operating variance:
    Cost item:
    If Actual > Revised Std = Adverse
    If Actual < Revised Std = Favorable

    Revenue item:
    If revised Std > Actual = Adverse

    Planning Variance
    Material
    Price = (Orig. Std. price – Revised Std. price) x
    Revised Std Qty
    Usage = (Orig. Std. Qty – Revised Std. Qty) x
    Revised SP

    Labour
    Rate = (Orig. std. rate – Revised Std. rate) x Revised
    Std hr
    Efficiency = (Orig. std. hr – Revised Std. hr) x Orig Std
    rate

    Sales
    Price = (Orig. Std. SP – Revised Std SP) x Revised
    Budgeted sales volume
    Margin volume = (Orig. Budgeted Sales vol. – Revised
    Budgeted Volume) x Orig. Std. Profit
    Operating Variance
    Material
    Price = (Actual price – Revised Std. price) x Actual Qty
    Usage = (Actual Qty – Revised Std. Qty) x Revised SP

    Labour
    Rate = (Actual rate – Revised Std. rate) x Actual hr
    Efficiency = (Actual hr – Revised Std. hr) x Revised Std rate

    Sales
    Price = (Actual SP – Revised Std SP) x Actual sales
    volume
    Margin volume = (Actual vol. – Revised Budgeted Volume) x
    Revised Std. Profit

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