P1.C.1 Cost & Variance Measures Flashcards
Total Direct Material Cost Variance
P1.C.1 Cost & Variance Measures
= (APAQ)-(SPSQ)
Actual quantity x actual price - standard quantity x standard price
Total Direct Labor Variance
P1.C.1 Cost & Variance Measures
= (AHAR)-(SHSR)
Actual hours x actual rate - standard hours x standard rate
Total Variable Overhead Cost
P1.C.1 Cost & Variance Measures
=(AHAVR)-(SHSVR)
Actual hours x actual variable overhead rate - standard hours x standard variable overhead rate
Total Fixed Overhead Variance
P1.C.1 Cost & Variance Measures
= Actual FOH - Standard FOH
= Actual FOH rate @ Actual Activity - Budgeted FOH rate @ Standard Activity
Total Budget Variance
P1.C.1 Cost & Variance Measures
=Flexible budget variance + sales volume variance
=(Difference in price/cost per unit x actual units) + (Difference in units sold x budgeted price/cost per unit)
Sales Price Variance
P1.C.1 Cost & Variance Measures
=(AP-SP)*AQ
Actual selling price - budgeted selling price x actual units sold
Sales Volume Variance
P1.C.1 Cost & Variance Measures
=(AQ-SQ)*SP
Actual units sold - budgeted units sold x budgeted price per unit
Difference between flexible budget operating income and static budget operating income
Sales Quantity Variance
P1.C.1 Cost & Variance Measures
=(AQ-SQ)xWASPSM
Actual units sold - budgeted units sold x weighted average standard price for standard mix
Fixed Overhead Spending Variance
P1.C.1 Cost & Variance Measures
= Actual FOH - budgeted FOH
= Actual FOH rate @ actual activity- Budgeted FOH rate @ budgeted activity
Fixed Overhead Volume Variance
P1.C.1 Cost & Variance Measures
= Budgeted FOH - Standard FOH*
= Budgeted FOH @ budgeted level of activity -
*budgeted FOH @ standard level of activity
Variable Overhead Spending Variance
P1.C.1 Cost & Variance Measures
=(AVR-SVR)*AH
Actual variable overhead rate - standard variable overhead rate x actual hours
Comparison of what was spent vs. what was budgeted
Direct Materials Price Variance
AKA Purchase Price Variance
(P1.C.1 Cost & Variance Measures)
=(AP-SP)*AQ
Actual price - standard price x actual materials purchased
If variance is positive, it’s unfavorable
Direct Material Usage Variance
P1.C.1 Cost & Variance Measures
=(AQ-SQ)*SP
Actual quantity used - standard quantity that should have been used x standard price per unit
If variance is positive, it’s unfavorable
Direct Labor Rate Variance
P1.C.1 Cost & Variance Measures
=(AR-SR)*AH
Actual labor rate - standard labor rate x actual hours worked
If variance is positive, it’s unfavorable
Direct Materials Mix Variance
P1.C.1 Cost & Variance Measures
=(WASCAM-WASCSM)*AQ
Actual mix - standard mix x actual quantity purchased
If variance is positive, it’s unfavorable
