Variances

• Sales Volume Variance

  (Budgeted volume – Actual Volume) x Standard Contribution per unit
• Sales price variance

  (Actual selling price– standard selling price) x actual volume sold (in units)
• Materials Price Variance

  (Standard Price – Actual Price) x Actual Quantity
• Materials Usage Variance

  (Standard Quantity for actual production – Actual Quantity) x Standard Price
• Total Materials Variance

  Price Variance + Usage Variance
• Labour Rate Variance

  (Standard Rate – Actual Rate) x Actual Hours
• Labour Efficiency Variance

  (Standard Hours for actual production– Actual Hours) x Standard Rate
• Total Labour Variance

  Rate Variance + Efficiency Variance
• Fixed Overhead Variance

  BFO – AFO
• Variable Overhead Expenditure (or Spending) Variance

  (SR-AR) x AH
• Variable Overhead Efficiency Variance

  (Standard Hours for actual production– Actual Hours) x Standard Rate
• Sales mix variance

  (actual sales quantity – actual sales quantity in budgeted proportions) x standard contribution
• Sales quantity variance

  (actual sales quantity in budgeted proportions – budgeted sales quantity) x standard contribution (or profit)
• Mix Variance

  (AQ – AQ in budgeted proportions) × Standard contribution
• Quantity variance

  (AQ in budgeted proportions – BQ) × Standard contribution