Chapter 9: Standard costing and variance analysis

Question 1

formula for Materials Price variance

Answer 1

(AP-SP) x AQ

Question 1

formula for Materials Usage variance

Answer 1

(AQ - SQ) x SP

Question 2

Formula for labour rate variance

Answer 2

(AP-SP) x AQ

Question 3

Formula for labour efficiency variance

Answer 3

(AQ-SQ) x SP

Question 4

Formula for Variable overhead expenditure variance

Answer 4

(AP-SP) x AQ

Question 5

Formula for variable overhead efficiency variance

Answer 5

(AQ-SQ) x SP

Question 6

Formula for Sales volume variance

Answer 6

(AQ-SQ) x Standard contribution per unit

Question 7

Formula for sales price variance

Answer 7

(AP-SP) x AQ