Chapter 12 - Advanced variances Flashcards
What is the sales price variance
Actual quantity sold x Actual price
Actual quantity sold x Standard price
What is the sales volume variance
Actual quantity sold x Standard profit/contribution
Budgeted quantity sold x Standard profit/contribution
What is the materials price variance?
Actual Quantity Purchased × Actual price
Actual Quantity Purchased × Standard price
What is the materials usage variance?
Actual Quantity Used × Standard price
Standard Quantity Used (for actual production) × Standard price
What is the labour rate variance?
Actual hours paid × Actual labour rate
Actual hours worked × Standard labour rate
What is the labour efficiency variance?
Actual hours worked × Standard labour rate
Standard Hours × standard labour rate
What is the variable overhead expenditure variance?
Actual hours paid × Actual variable overhead rates
Actual hours worked × Standard variable overhead rate
What is the variable overhead efficiency variance?
Actual hours worked × Standard variable overhead rate
Standard Hours worked × Standard variable overhead rates
How do you calculate the Fixed OH Volume variance?
Volume = Efficiency + Capacity
What is the fixed overhead expenditure variance?
Actual cost
Budgeted hours × Standard rate
What is the fixed overhead capacity variance?
Budgeted overhead
Actual hours × Standard rate
What is the fixed overhead efficiency variance?
Actual hours × Standard rate
Standard hours × Standard rate
How do you calculate the Idle time variance?
Actual hours paid × Standard rate
Actual hours worked × Standard rate
