Variances Flashcards
Price Variance Formula
(Standard Price - Actual Price) x Actual Quantity
Usage Variance Formula
(Standard Quantity - Actual Quantity) x Standard Price
Material Price Variance Formula
Actual Quantity x (Standard Price - Actual Price)
Material Quantity Variance Formula
Standard Price x (Standard Quantity - Actual Quantity)
Variable Overhead Efficiency Variance Formula
Standard Rate x ( Standrad Hours - Actual Hours)
Fixed Overhead Expenditure Variance Formula
Budgeted Fixed Overhead Rate - Actual Fixed Overhead Rate
Sales Volume Profit Variance Formula
Standard Profit Margin x (Actual Sales Unit - Budgeted Sales Unit)
Rate Variance Formula
(Standard Rate - Actual Rate) x Actual Hours
Efficiency Variance Formula
(Standard Hours - Actual Hours) x Standard Rate
Labour Rate Variance Formula
Actual Hours x (Standard Rate - Actual Rate)
Labour Overhead Spending Variance Formula
Actual Hours x (Standard Rate - Actual Rate)
Fixed Overhead Volume Variance Formula
Overhead Absorption Rate x (Actual production units - Budgeted production units)
Selling Price Variance Formula
Actual Sales Units x (actual selling price - budgeted selling price)
Target Profit Units Formula
(Fixed Costs + Target Profit) / Contribution per unit
Cost per Unit (OAR)
Overhead costs / Direct labour hours
Cost Gap Formula
Estimated cost - Target cost
Contribution per unit
Selling pice per unit - variable cost per unit
Margin of safety units formula
Current output - breakeven output
Margin of safety % Formula
( (Budgeted sales - breakeven sales) / Budgeted Sales ) x100
Contribution Formula
Selling Price - Variance Cost
Breakeven units formula
Fixed costs / Contribution per unit
Expenditure variance
If actual expenditure is different from budgeted expenditure there is an expenditure variance
Volume Variance
If actual production is different from the budgeted production there is a volume variance
Adverse
Bad
