Material Cost Variance Material cost variance = (AQ x AP) (SQ x SP) where AQ = Actual quantity AP = Actual price

e SQ = Standard quantity for the actual output SP = Standard price Materials Usage Variance Materials quantity variance = (Actual quantity Standard quantity) x Standard price Materials Price Variance Materials price variance = (Actual price Standard price) x Actual quantity Materials Mix Variance Materials mix variance = (Actual mix evised standard mix of actual input) x Standard price evised standard proportion is calculated as follows! Standard mix of a particular material *otal standard quantity x Actual input

Materials Yield Variance "ield variance = (Actual yield Standard yield specified) x Standard cost per unit # "ield variance = (Actual loss Standard loss on actual input) x Standard cost per unit Labour Cost Variance $a%our cost variance = (A& x A S& x S ) where A& = Actual hours A = Actual rate S& = Standard hours S = Standard rate Labour Efficiency Variance $a%our efficiency variance = (Actual hours Standard hours for the actual output) x Std' rate per hour' Labour Rate Variance $a%our rate variance = (Actual rate Standard rate) x Actual hours Labour Mix Variance $a%our mix variance = (Actual la%our mix evised standard la%our mix in terms of actual total hours) x Standard rate per hour Labour Yield Variance $a%our yield variance = (Actual loss Standard loss on actual hours) x Avera(e standard la%our rate per unit of output

Total Overhead Cost Variance (Actual overhead incurred Standard hours for the actual output x Standard overhead rate per hour) # (Actual overhead incurred Actual output x Standard overhead rate per unit) Variable Overhead Variance (Actual overhead cost Actual output x +aria%le overhead rate per unit) # (Actual overhead cost Standard hours for actual output x Standard varia%le overhead rate per hour) ixed Overhead Variance (,ixed overhead variance = Actual overhead cost ,ixed overhead a%sor%ed) # (Actual overhead cost Standard hours for actual output x Standard fixed overhead rate per hour) Variable Overhead Ex!enditure "#!ending or $udget% Variance (Actual varia%le overhead -ud(eted varia%le overhead) Variable Overhead Efficiency Variance (Actual hours Standard hours for actual output x Standard varia%le overhead rate per hour) ixed Overhead Ex!enditure "#!ending or $udget% Variance (Actual fixed overhead -ud(eted fixed overhead) ixed Overhead Volu&e Variance (-ud(eted overhead applied to actual output -ud(eted fixed overhead %ased on standard hours allowed for actual output) # (Actual production -ud(eted production) x Standard fixed overhead rate per unit ixed Overhead Efficiency Variance ,ixed overhead efficiency variance = (Actual hours Standard hours for actual production) x Standard fixed overhead rate per hour # ,ixed overhead efficiency variance = (Actual production Standard production as per actual time availa%le) x Standard fixed overhead rate per unit ixed Overhead Ca!acity Variance .apacity variance = (Actual capacity hours -ud(eted capacity hours) x Standard fixed overhead rate per hour #ales Value Variance Sales value variance = (Actual value of sales -ud(eted value of sales) Actual sales = Actual quantity sold x Actual sellin( price -ud(eted sales = Standard quantity x Standard sellin( price

# Sales value variance = (Actual quantity x Actual sellin( price) (Standard quantity x Standard sellin( price) #ales Price Variance Sales price variance = (Actual sellin( price -ud(eted sellin( price) x Actual quantity #ales Volu&e Variance Sales volume variance = (Actual quantity -ud(eted quantity) x -ud(eted sellin( price #ales Mix Variance Sales mix variance = (Actual mix quantity sold Actual quantity in standard proportion) x Standard sellin( price Sales mix variance = (-ud(eted Price per unit of actual mix -ud(eted price per unit of %ud(eted mix) x *otal actual quantity #ales 'uantity Variance Sales quantity variance = (*otal actual quantity *otal %ud(eted quantity) x -ud(eted price per unit of %ud(eted mix Total #ales Margin Variance *otal sales mar(in variance = Actual profit -ud(eted profit #ales Margin Price Variance Sales mar(in price variance = (Actual mar(in per unit -ud(eted mar(in per unit) x Actual quantity #ales Margin Volu&e Variance Sales mar(in volume variance = (Actual quantity -ud(eted quantity) x -ud(eted mar(in per unit