Accounting Standard Costing

Total direct material variance

(standard quantity for actual production × standard price) - (actual quantity used × actual price)

Direct material price variance

actual quantity used × (standard price – actual price)

Direct material usage variance

standard price × (standard quantity for actual production – actual quantity used)

Total direct labour variance

(standard hours for actual production × standard rate) - (actual hours used × actual rate)

Direct labour rate variance

actual labour hours used × (standard rate – actual rate)

Direct labour efficiency variance

standard rate × (standard hours for actual production – actual hours used)

Total fixed overhead variance

standard fixed overheads based on flexed budget - actual fixed overheads

Fixed overhead expenditure variance

standard fixed overheads based on fixed budget - actual fixed overheads

Fixed overhead volume variance If OAR is based on labour hours:

standard OAR × (standard hours based on actual output - standard hours based on fixed output)

Fixed overhead volume variance If OAR is based on units:

standard OAR × (actual units - fixed units)

Fixed overhead capacity variance

standard OAR × (actual hours - standard hours)

Fixed overhead efficiency variance

standard OAR × (standard hours based on actual output - actual hours)

Total sales variance

(actual quantity × actual selling price) - (standard quantity × standard selling price)

Sales price variance

actual quantity sold × (actual selling price – standard selling price)

Sales volume variance

standard selling price × (actual quantity sold – standard quantity sold)