Variance Analysis Flashcards
Sales Volume variance
SVv = (Actual Quantity sold - Budgeted Quantity sold) x Standard CPU
= (AQ - BQ) x SCPU
Sales Price variance
SPv = (Actual selling Price - Standard selling Price) x Actual Quantity sold
= (AP - SP) x AQ
Material Price variance
MPv = (Standard Price of material - Actual Price of material) x Actual Quantity of material used
= (SP - AP) x AQ
Material Usage variance
MUv = (Standard Quantity used to produce actual output - Actual Quantity used to produce actual output) x Standard Price
= (SQ - AQ) x SP
Material Total variance
MTv = MPv + MUv
Labour Rate variance
LRv = (Standard Rate per hour - Actual Rate per hour) x Actual Hours worked
= (SR - AR) x AH
Labour Efficiency variance
LEv = (Standard Hours required to produce actual output - Actual Hours used to produce actual output) x Standard Rate per hour
= (SH - AH) x SR
Labour Total variance
LTv = LRv + LEv
Variable overhead Expenditure variance
VExv = (Standard variable overhead Rate per hour - Actual variable overhead Rate per hour) x Actual Hours used
= (SR - AR) x AH
Variable overhead Efficiency variance
VEfv = (Standard Hours for actual output - Actual Hours for actual output) x Standard variable overhead Rate per hour
= (SH - AH) x SR
Variable overhead Total variance
VTv = VExv + VEfv
Fixed overhead variances
Fv = (Actual fixed overhead Cost - Budgeted fixed overhead Cost)
= (AC - BC)
