B2 Variance Analysis

Question 1

DM price variance

Answer 1

Actual quantity purchased x (Actual price - Standard price)

Question 2

DM quantity usage variance

Answer 2

Standard price x (Actual quantity used - Standard quantity allowed)

Question 3

DL rate variance

Answer 3

Actual hours worked x (Actual rate - Standard rate)

Question 4

DL efficiency variance

Answer 4

Standard rate x (Actual hours worked - Standard hours allowed)

Question 5

VOH rate (spending) variance

Answer 5

Actual hours x (Actual rate - Standard rate)

Question 6

VOH efficiency variance

Answer 6

Standard rate x (Actual hours - Standard hours allowed for actual production volume)

Question 7

FOH budget (spending) variance

Answer 7

Actual fixed overhead - Budgeted fixed overhead

Question 8

FOH volume variance

Answer 8

Budgeted fixed overhead - standard fixed OH cost allocated to production*

(Based on Actual production x Standard rate)

Alternate forumla
(Actual production-budgeted production) * Per unit standard fixed OH rate

Question 9

Sales price variance

Answer 9

(Actual SP/unit - Budgeted SP/unit) x Actual sold unit

Question 10

Sales volume variance

Answer 10

(Actual units sold - Budgeted sales units) x Standard contribution margin/unit

Question 11

Standard direct cost

Answer 11

Standard price x Standard quantity

Question 12

Indirect (Overheade) Costs

Answer 12

Standard (predetermined) application rate x Standard quantity

Question 13

Controllable Variance

Answer 13

If a variance from standard could have been prevented