Direct Material Variance

Labour Variance
Overhead Variance
Sales or Revenue Variances
Where,
AQ = Actual Quantity Sold
AR = Actual Rate of Profit
SR (or) BR = Standard (or) Budgeted Rate of Profit
RSQ = Revised Standard Quantity
SQ (or) BQ = Standard (or) Budgeted Quantity

1. AQAR = Actual Profit

2. AQSR = Actual Quantity of Sales at Standard Rate of Profit
3. RSQSR = Revised Standard (or) Budgeted Profit
4. SQSR = Standard (or) Budgeted Profit

a. Profit Sub-Volume or Quantity Variance = 3-4

b. Profit Variance due to Sales Mix = 2-3
c. Profit Variance due to Sales Volume = 2-4
d. Profit Variance due to Selling Price = 1-2
e. Total Profit Variance = 1-4