Variance=Actual-Standard/Budgeted

Varian
Actual Quantity Standard Quantity
Material 4000 10000
Labour 4000 10000
Variable Material Overhead 4000 10000
Fixed Material overhead 4000 10000
Cost of Goods Manufactured 4000 10000
Inventory
Manufacturing Cost of Good Sold 3500 10000
Selling & Administrative Expenses
Variable 3500 10000
Fixed 3500 10000
Cost of Goods Sold 3500 10000

Actual SalesQuantity Budgeted Sales Quantity

3500 10000

Actual Sales Quantity Budgeted Sales Quantity

3500 10000
 Variance
Actual Price Standard Price Price Variance
2.945 3 -220.000000000001 F
2.6125 2 2450 A
1.43 1 1720 A
6.725 2.5 16900 A
13.7125 8.5 20850 A

14.4571 8.5 20849.85 A

0.6571 0.5 549.85 A

2.3429 0.8 5400.15 A
17.6 9.8 27300 A

Sales Value Variance

Actual Sales Price Budgeted Sales Price Sales Price Variance
11 12 -3500 A

Sales Margin Variance

Actual Margin/unit Budgeted Margin/unit Sales Margin Price Variance
-6.4571 2.2 -30299.85 A
 Usage Variance Cost Variance
-18000 F -18220 F
-12000 F -9550 F
-6000 F -4280 F
-15000 F 1900 A
-51000 F -30150 F

-55250 F -34400.15 F

-3250 F -2700.15 F
-5200 F 200.150000000001 A
-63700 F -36400 F

Sales Volume Variance Sales Value Variance Sales Quantity Variance

-78000 A -81500 A -3500 A

Sales Margin Volume Variance Total Sales Margin Variance Sales Margin Quantity Variance
-14300 A -44599.85 A -30299.85 A
 Standard Per unit Budget January 2008
Production: 10,000
Sales: 10,000

Sales revenue: 12 $120,000

Direct material: 3 30,000
Direct labour: 2 20,000
Variable manufacturing Overhead 1 10,000
Fixed manufacturing Overhead 2.5 25,000
Cost of production: 8.5 85,000
Less: Inventory 500 @ $8.50 nil
Full manufacturing
Cost of goods sold: 8.5 85,000
Selling and administrative expense:
Variable: 0.5 5,000
Fixed: 0.8 8,000
Total: 1.3 13,000
Cost of goods sold: 9.8 98,000
Standard margin: $2.20
Operating profit: $22,000
(Operating loss):
Actual January 2008
4,000
3,500

$38,500 $11.0000
11,780 $2.9450
10,450 $2.6125
5,720 $1.4300
26,900 $6.7250
54,850 $13.7125
4,250

50,600 $14.4571

2,300 $0.6571
8,200 $2.3429
10,500 $3.0000
61,600 $17.6000

($22,600)