Standard Costing

Material

MPV
Material Cost var
(MCV)
= SCAO - AC

= (SP - AC ) AQ

Labour

LRV

Labour Cost
var
MUV
(LCV)
= SC - AC
= SC - ACAO

= (SR - AR ) AH
= (SR x AH ) - AC

AO

*SCAO = SC/u x AO

LEV
= (SHAO - AHw) SR

= SR x SHAO

Fixed Overhead
- Based on Hour

A
B

- Based on Output

F OHD Cost var

F=
OHD
SCAO Cost
- AC var
==
SRSC
x SHAO
AO - AC

FO
Exp var
F O Exp
Var
= BC - AC
= BC - AC

F O Capacity var
= (AH - BH) SR

F O Volume var
= (SHAO F- BH)
SR
O volume
var

F O Eff var

= (AO - BO) SR = (SH - AHw) SR

AO

Variable Overhead
-Based on Hour

V O Exp Var

V OHD Cost var

= (SR x AH) - AC

= SCAO - AC
= SR x SHAO
**SCAO = SC x AO

V O Eff var
= (SHAO - AHw) SR

= SR x SH

- Based on Output

Sales

V OHD Cost var

= SCAO - AC

V O Exp var
= (SR/u x AO) - AC

S. Price var
Sales Contribution
var
= Bgt cont - Actual cont
n

Sales margin var

(sales profit
var)
= Bgt profit - Actual
profitSC
**Actual profitSC = AS - SC

= (SP - AQs ) - AS

MCV

S. Volume var
= (BQS - AQS) SCM

S. Price var

**SCM = Bgt contn/u

= (SP
- AQs ) - AS
MPV
S. Volume MMV
Margin var
= (BQS - AQS) SM

= (SM A1 - AM)
SP

**SM = SP - SC

MUV

MYV
= (AY - SY A1)
SC

Material mix var & Mat yield var