Variance Analysis Formulae

A level Standard Costing

Total Sales Variance

Actual Sales - Standard Sales

Sales Volume Variance

(Actual Sales Quantity - Standard Sales Quantity) x Standard Selling Price

Sales Price Variance

(Actual Selling Price - Standard Selling Price) x Actual Sales Quantity

Total DM Cost Variance

Flexed Material Cost - Actual Material Cost

DM Usage Variance

(Flexed DM Qty - Actual DM Qty) x Standard DM Rate

DM Price Variance

(Standard DM Rate - Actual DM Rate) x Actual DM Qty

Total DL Variance

Flexed DL Cost - Actual DL Cost

DL Efficiency Variance

(Flexed DL hours - Actual DL hours) x Standard DL Rate

DL Rate Variance

(Standard DL Rate - Actual DL Rate) x Actual DL Hours

Total Variable Overheads Variance

Flexed Variable Overheads - Actual Variable Overheads

Variable Overheads Efficiency Variance

(Flexed DL Hours - Actual DL Hours) x Standard Variable O/H Rate

Variable Overhead Rate Variance

(Standard O/H Rate - Actual O/H Rate) x Actual DL Hours

Total Fixed O/H Variance

(Flexed Hours x OAR/hr) - Actual Fixed Overheads

Fixed O/H Expenditure Variance

Standard Fixed O/H - Actual Fixed O/H

Fixed O/H Volume Variance

(Standard Hours - Flexed Hours) x OAR/ hr

Fixed O/H Efficiency Variance

(Flexed Hours - Actual Hours) x OAR/ hr

Fixed O/H Capacity Variance

(Actual Hours - Standard Hours) x OAR/ hr