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Direct Material Variance

Total Direct Material Variance AC - (SQA x SR) or AC - (AY WASR)

Price Variance AQAM (AR - SR)

Usage / Quantity / Production SR ( AQAM - SQA)

Mix Variance
AQAM < AQSM = (F) AQSM < SQA = (F)

Yield Variance SR (AQSM - SQA) or SR (AY - SY)

SR (AQAM - AQSM)

Shortcut for the Material Variance (A) AC ---> AQAM AR xxxxxx


Price Variance

(B) Budget at Actual AQAM SR

xxxxxx
Total DM Variance (A>B)=Adverse Mix (B>C)=Ad Yield (C>D)=Ad Quantity Variance (B>D)=Adver

(C) AQSM SR

xxxxxx

(D) SC ---> SQASM SR

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

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Fixed & Variable Cost Variance


Total Fixed Cost Variance AC - (SHA SRFC) Total Variable Cost Variance AVC - (SHA SRVC)

FC Expenditure Variance AFC - Budgeted FC

Volume Variance SRFC (BH - SHA) or SRFC/BQ (BQ - AY)

Capacity Variance

Fixed Efficiency Variance

Variable Efficiency Variance

Variable Expenditure (Spending) Variance

SRFC (BH - AH)

SRFC (AH - SHA)

SRVC (AH - SHA)

AH (ARVC - SRVC)

Efficiency Variance SR ( AH - SHA)

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

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Labor Variance
(When only labor is given)

Total Direct Labor Cost Variance

AC - SC
Rate Variance Traditional Efficiency Variance

AH (AR - SR)

SR ( AHAM - SHA)

Labor Mix Variance

Labor Yield Variance

SR (AHAM - AHSM)

SR ( AHSM - SHA)

Labor Variance
(When only labor is given)

Total Direct Labor Cost Variance

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)

Total Direct Labor Cost Variance

AC - SC
Rate Variance Traditional Efficiency Variance

AH (AR - SR)

SR ( AH - SHA)

Yield

Real Efficiency

SR (SHASy - SHAAy)

SR ( AH - SHASy)

Calander Variance Standard rate of FC/day or Budgeted FOH/Budgeted No. of days

(Actual Days - Budgeted Days)

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

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Gross Profit Analysis GP difference

Sales (difference)

Cost (Difference)

Sales Price AQFG (AR - SR)

Sales Volume SR (AQ - BQ)

Cost Volume SR (AQ - BQ)

Cost Price AQ (AR - SR)

Net Volume / Sales Volume Variance SRGP (AQ - BQ)

Net Volume / Sales Volume Variance (In case of >1 products)

Mix Variance SRGP (AQAM - AQSM)

Final Sales Volume Variance SRGP (AQSM - BQ)

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 =

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