Professional Documents
Culture Documents
Mix Variance
AQAM < AQSM = (F) AQSM < SQA = (F)
SR (AQAM - AQSM)
xxxxxx
Total DM Variance (A>B)=Adverse Mix (B>C)=Ad Yield (C>D)=Ad Quantity Variance (B>D)=Adver
(C) AQSM SR
xxxxxx
xxxxxx
If SR of input is given, it is easy to calculate SRInput(AQSM-SQA) If SC of output is given, Sy = (Actual Input Std output per kg of R/M) SCOutput(Ay - Sy)
Should be same.
SQA = Ay Standard Consumption of material per unit Sy = Actual Input Standard output per kg of R/M Idle Capacity Ratio = Practical capacity - Budgeted Capacity Practical capacity Production Volume Ratio = Standard Hours produced Budgeted capacity 100
Ay and Sy Actual Input xxx less: % N.loss (xxx) Sy xxx less: A.loss (xxx) Ay xxx
100 = X %
where actual output is 'X%' of budget Efficiency Ratio = Standard hours Actual hours 100
Capacity Variance
AH (ARVC - SRVC)
Matz n Usrey Terms 2 Variance Controllable Variance Volume Variance 2,3 Variance Spending Variance Capacity Variance Efficiency variance 2,3,4 Variance Spending Variance Capacity Variance Fixed Efficiency Variance Variable Efficiency Variance
Labor Variance
(When only labor is given)
AC - SC
Rate Variance Traditional Efficiency Variance
AH (AR - SR)
SR ( AHAM - SHA)
SR (AHAM - AHSM)
SR ( AHSM - SHA)
Labor Variance
(When only labor is given)
AC - SC
Rate Variance Traditional Efficiency Variance
AH (AR - SR)
SR ( AHPaid - SHA)
Idle Time
Real Efficiency
SR (AHIdle - AHWorked)
SR ( AHWorked - SHA)
Labor Variance
(When labor and raw material, both are given)
AC - SC
Rate Variance Traditional Efficiency Variance
AH (AR - SR)
SR ( AH - SHA)
Yield
Real Efficiency
SR (SHASy - SHAAy)
SR ( AH - SHASy)
ARVC = VOH/AD SRVC = VOH/BD ARFC = FOH/AD SRFC = FOH/BD AHAM < SHA = (F) SHA = Ay Standard time per unit Standard Time pu = DLH / BQ
Sales (difference)
Cost (Difference)
Reconciliation of Standard And Actual Costs Actual Cost Add: All favourable variances Less: All unfavourable variances Standard Cost
xxx
xxx
(xxx) xxx
Volume Ratio =
SHA BH SHA AH AH BH
Efficiency Ratio =
Capacity Ratio =