Variance Analysis Flashcards
1
Q
Material usage variance formula
A
SP(AQ-SQ)
2
Q
formula for Actual Quantity (AQ)
A
AQ per unit x Actual Volume
3
Q
Labour efficiency (usage) variance formula
A
SR(AH-SH)
4
Q
formula for Standard Quantity (SQ)
A
SQ per unit x Actual volume
5
Q
Material price variance formula
A
AQ(AP-SP)
6
Q
Labour rate of pay variance
A
AH(AR-SR)
7
Q
What do you need to show on a level 1 static budget variance
A
Units sold Revenue Variable costs Contribution margin Fixed costs Operating profit
8
Q
Flexible budget variance equation (budget variance question)
A
FBV = Actual - Flexible budget
9
Q
Equation for Sales volume variance (budget variance question)
A
Flexible budget - Static budget
