VARIANCES

MATERIALS PRICE VARIANCE

= (AP – SP) x AQ

= ACTUAL TOTAL MATERIAL COST – FLEXIBLE, BUDGET ALLOWED

MATERIALS QUANTITY VARIANCE

= (AQ – SQ) x SP

= FLEXIBLE BUDGET – STATIC BUDGET

LABOR RATE VARIANCE

= (AR – SR) x AH

= ACTUAL TOTAL PAYROLL – FLEXIBLE BUDGET ALLOWED

LABOR EFFICIENCY VARIANCE

= (AH – SH) x SR

= FLEXIBLE BUDGET – STATIC BUDGET

MIX VARIANCE

= (AMIX% – SMIX%) x TOTAL ACTUAL CONSUMPTION x STD RATE

YIELD VARIANCE

= (TOTAL ACTUAL CONSUMPTION – TOTAL STANDARD CONSUMPTION) x SMIX% x STD RATE

VARIABLE SPENDING VARIANCE

= (AR x AH) – (SR x AH)

= ACTUAL TOTAL VARIABLE OVERHEAD / FLEXIBLE, BUDGET ALLOWED OR STANDARD VARIABLE RATE x ACTUAL HOURS

VARIABLE OVERHEAD EFFICIENCY VARIANCE

= BAAH – BASH

= (AH – SH) x STANDARD VARIABLE OVERHEAD RATE

= FLEXIBLE BUDGET – STATIC BUDGET

FIXED SPENDING VARIANCE

= ACTUAL TOTAL OVERHEAD – BUDGETED FIXED OVERHEAD

FIXED OVERHEAD VOLUME/CAPACITY VARIANCE

= BASH – STD OH

= (BH – SH) x STANDARD FIXED OVERHEAD RATE

= BUDGETED FIXED OVERHEAD – STANDARD FIXED OVERHEAD

SPENDING VARIANCE

= VARIABLE SPENDING + FIXED SPENDING

CONTROLLABLE VARIANCE

= VARIABLE SPENDING + FIXED SPENDING + VARIABLE EFFICIENCY