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List of Variance Formulas
List of Variance Formulas
ed Standard Price) DIRECT MATERIAL PRICE VARIANCE Materials Price Variance = (Actual quantity purchased Actual price) (Actual quantity purchased Standard price) DIRECT LABOUR RATE VARIANCE Labour rate variance = (Actual hours worked Actual rate) (Actual hours worked Standard rate) DIRECT LABOUR EFFICIENCY VARIANCE Labour efficiency variance = (Actual hours worked Standard rate) (Standard hours allowed Standard rate) IDLE CAPACITY VARIANCE Budgeted allowance based on actual hours worked* (Actual hours worked Standard overhead rate) *Fixed expenses budgeted + Variable expenses (actual hours worked variable overhead rate) FIXED OVERHEAD EFFICIENCY VARIANCE (Actual hours worked Fixed overhead rate) (Standard hours allowed Fixed overhead rate) FIXED OVERHEAD VOLUME VARIANCE. Factory overhead volume variance = Budgeted allowance based on standard hours allowed* Overhead charged to production** * Budgeted fixed expenses + variable expenses (standard hours allowed for actual
overhead rate) production variable