Formulas Flashcards
OAR overhead absorption rate
total budgeted overhead cost /
total budgeted level of activity
STANDARD COST(what they thought it would cost)
standard cost of martial x units
material cost
standard cost - actual cost x standard rate
Material price variance
(standard price - actual price ) x actually quanity used
Total material vanirnace
material price variance + material usage variance
labour rate variance
(standard rate - actual rate ) x actual hours
Standard labour rate
Budgeted LABOUR cost /
budeted Labour hours
Actual labour rate
Actual labour cost /
actual labour hours
Labour efficiency variance
(standard hours - actual hours ) x standard rate
standard labour hours
budgeted labour hours /
budgeted output
actual labour hours
how much they used
total labour variance
labour rate variance + labour efficiency
if you can’t find LRV or LE
tOTAL LABOUR VARAINCE (standard hours x standard rate ) - (actual hors x actual rate )
variance overhead expenditure.
Actual hours worked should be - actual cost
total sales variance
sales price vainarce + sales volume contribution variance
