Performance Management- variance

material(kgPrice ($/kgcost($/unit) actual

A 20 1 20 Total input 25000 kg
B 30 2 60 Total outp 300 unit
C 50 3 150
total input 100 230
loss 20% -20 0
output 80 230

Standard average cost per kg of 2.875

Material u(based on total output) Material yield varian (based on total input)
standard uactual usa std price variance Standard uStandard mStd price
A 6000 A 6000 5000
B 9000 B 9000 7500
C 15000 C 15000 12500
usage > mix, favourable
Material m(based on total input) kg kg
Standard mActual mix Std price Variance unit unit
A 5000 Std yield actual yiel Standard av
B 7500 total 250 300 2.875
C 12500 20000

1 Sales variance
1.1 Sales price variance
1.2 Sales volume variance

2 Sales volume variance

2.1 Sales mix variance
2.2 Sales quantity variance

3 Sales quantity variance

3.1 market share variance
3.2 market size variance

Sales mix Standard sActual salevariance Std CPU / pVariance

actual totalactual total sales in actual mix
commodity 30643 29800 -843 11.2 -9440 Adverse
2 28600 30400 1800 4.2 7560 Favorable
3 26557 25600 -957 12 -11486 Adverse
85800 85800 -13366 Adverse

Working
commodity 2 3 OAR 4
Std selling 30 35 41.6 Average stdbudgeted total profit/ budgeted total units
variable co -18 -28.4 -26.4
fixed over -0.8 -2.4 -3.2
Std profit 11.2 4.2 12
budgeted sa 30000 28000 26000 84000
total profit 336000 117600 312000 765600
budgeted total profit/ budgeted total units 9.11
Sales quantity variance
Budgeted to
Actual totavariance (uAverage stdvariance($)
total 84000 85800 1800 9.11 16406 favourable

Std sales ubudgeted savariance (uStd CPU / pvariance($)

commodityactual totalbudgeted total sales in std mix
1 30643 30000 643 11.2 7200 fav
2 28600 28000 600 4.2 2520 fav
3 26557 26000 557 12 6686 fav
85800 84000 16406 fav

30643 0.357143

Market share variance std average CPU or

Std marketActual marActual markStd averagevariance
% % units 9.11

Market size variance std average CPU or

std marketActual mark
std marketStd averagevariance
units units % $ $

market shaentity sales/the whole market sales or industry sales

Std marketbudgeted m budgeted entity sales/ budgeted the whole market sales
Actual market share actual entity sales/ actual the whole market sales

market sizethe whole m

industry sales
Std marketbudgeted / estimated market size
actual market size

market share
market size
entity sales
 total input)
Variance

variance

d total units