Advanced Variances Flashcards
What is the sales price variance formula?
Actual quantity x Actual price - Actual quantity x Standard price
What is the sales volume variance formula?
Actual quantity x Standard margin - Budget quantity x Standard margin
What is the materials price variance formula?
Actual quantity x Actual price - Actual quantity x Standard price
What is the materials usage variance formula?
Actual quantity x Standard price - Standard quantity for actual production x Standard price
What is the labour rate variance formula?
Actual hours x Actual rate - Actual hours x Standard rate
What is the labour efficiency variance formula?
Actual hours x Standard rate - Standard hours for actual production x Standard rate
What is the variable expenditure variance formula?
Actual hours x Actual variable overhead rates - Actual hours x Standard variable overhead rates
What is the variable efficiency variance formula?
Actual hours x Standard variable overhead rate - Standard hours x Standard variable overhead rate
What is the material mix variance formula?
AQAM - AQSM x Standard price
What is the material yield variance formula?
AQSM - SQSM x Standard price
What is the sales mix variance formula?
AQAM - AQSM x Standard margin
What is the sales quantity variance formula?
AQSM - SQSM x Standard margin
What is the (operational) market share variance formula?
AQSM - RBSSM
What is the (planning) market size variance formula?
RBSSM - BSSM
What standard is set for a high performance level, which employees and managers will recognise is unachievable?
Ideal standard
Which standard is not challenging and set on usual levels?
Current standard
Which standard is set to improve employees performance, but is achievable?
Attainable standard
Which standard may motivate employees and give them a long-term target to aim for, but may become out of date quickly and actually become quite demotivating?
Basic standard
