Variances

Question 1

Sales volume variances

Answer 1

actual units sold - standard units sold x contribution per unit

Question 2

sales price variances

Answer 2

(actual selling price - standard selling price) X actual quantity sold

Question 3

direct labour efficiency variance

Answer 3

direct labour efficiency varaince = (actual hours - standard hours allowed) x standard rate

Question 4

direct labour rate variance

Answer 4

(direct actual rate-standard rate) x actual hours

Question 5

direct material usage variance

Answer 5

(actual quantity used - standard quantity allowed ) x standard price

Question 6

direct material price variance

Answer 6

(actual price - standard price) x actual quantity purchased

Question 7

variable overhead variance

Answer 7

(actual hours - standard hours allowed) x standard variable overhead rate

Question 8

fixed overhead volume variance

Answer 8

budgeted fixed overhead - (standard hours allowed x fixed overhead rate)