Variance formulae

Materials price variance (MPV)

( Average price - standard price ) x actual quantity purchased

Materials quantity variance (MQV)

( Actual quantity - standard quantity ) x standard price

Labour rate variance (LRV)

(Actual rate - standard rate ) x actual hours

Labour efficiency variance (LEV)

(Actual hours - standard hours) x standard rate for labour

Variable overhead spending variance (VOSV)

(actual rate - standard rate) - actual hours

variable overhead efficiency variance (VOEV)

(actual hours - standard hours ) x standard rate for labour

fixed overhead expenditure variance

actual - budgeted

sales price variance (spv)

(actual selling price - budgeted selling price) x actual quantity sold

sales volume variance (suv)

actual quantity sold - budgeted quantity sold x budgeted contribution per unit

what is contribution per unit?

selling price per unit less the variable cost per unit