equations

Question 1

give the equation for sales volume variance.

Answer 1

(standard Q - actual Q) x standard CPU

Question 2

give the equation for sales price variance.

Answer 2

(actual P - standard P) x actual Q

Question 3

give the equation for material price variance.

Answer 3

(standard P - actual P) x actual Q

Question 4

give the equation for material usage variance.

Answer 4

(standard Q - actual Q) x standard P

Question 5

give the equation for labour price rate variance.

Answer 5

(standard rate - actual rate) x actual hrs

Question 6

give the equation for labour efficiency variance.

Answer 6

(standard hrs - actual hrs) x standard rate

Question 7

give the equation for variable overhead rate variance.

Answer 7

(standard rate - actual rate) x actual hrs

Question 8

give the equation for variable overhead efficiency variance.

Answer 8

(standard hrs - actual hrs) x standard rate

Question 9

give the equation for fixed overhead variance.

Answer 9

budget fixed overhead - actual fixed overhead