Variance Calculations

Question 1

Direct Material Price Variance (DMPV)

Answer 1

DMPV =

(AP - SP) x AQ

Question 2

Direct Labor Rate Variance (DLRV)

Answer 2

DLRV =

(AR - SR) x AH

Question 3

Direct Materials Usage Variance (DMUV)

Answer 3

DMUV =
(AQ - SIAFAO) x SP

SIAFAO = standard input allowed for actual output

Question 4

Fixed Spending Variance

Answer 4

Fixed Spending Variance =

Actual FOH Rate x Actual Activity) – (Budgeted FOH Rate x Budgeted Activity

Question 5

Fixed Volume Variance

Answer 5

Fixed Volume Variance =

(Budgeted Activity - Standard Activity) x Budgeted FOH Rate

Question 6

Sales Volume Variance

Answer 6

(AQ - BQ) x Budgeted CM

Question 7

Sales Quantity Variance

Answer 7

(Total Actual Units Sold for All Products – Total Budgeted Units Sold for All Products) x
Weighted Average Standard Price for the Standard Mix aka WASPSM

Question 8

Sales Mix Variance

Answer 8

Sales mix variance =

(WASPAM – WASPSM) x Actual Units Sold

Question 9

Direct Materials Mix Variance

Answer 9

Direct Materials Mix Variance =

(WASCAM – WASCSM) x AQ

Question 10

Direct Labor Mix Variance

Answer 10

Direct Labor Mix Variance =

(WASCAM – WASCSM) x AQ

Question 11

Direct Materials Yield Variance

Answer 11

Direct Materials Yield Variance =

(Total Actual Quantity – Total Standard Quantity) x WASCSM

Question 12

Direct Labor Yield Variance

Answer 12

Direct Labor Yield Variance =

(Total Actual Direct Labor Hours – Total Standard Direct Labor Hours) x WASCSM