Basic & Mix & Yield Variances formula

Cost variance
Variance Formula
Material
Price variance = (Actual price – Std price) x Actual Qty
purchased
= (AP – SP) x AQ
Usage variance = (Actual Qty – Std Qty) x Std price
= (AQ – SQ) x SP
Mix variance = (Actual qty at actual mix – Actual qty at std
mix) x Std price
= (AQ.AM – AQ.SM) x SP
Yield variance = (Actual yield – Std yield) x Std material cost
Output = (AY – SY) x SC

Labour
Rate variance = (Actual rate – Std rate) x Actual hrs. paid
= (AR – SR) x Ahrpaid
Efficiency variance = (Actual hrs worked – Std hrs) x Std rate
= (AH – SH) x SR
Idle time variance = (Actual hrs paid – Actual hrs worked) x Std rate
= (Ahrpaid – Ahrworked) x SR
Mix variance = (Actual hours at actual mix – Actual hrs at Std
mix) x standard rate
= (Ahr.AM – Ahr.SM) x SR
Yield variance = (Actual yield – std yield) x Std labour cost
= (AY – SY) x SC

Variable Overhead
Expenditure variance = (Actual VOHR – Std VOHR) * Actual hours
= (AVOHR - SVOAR) * AH
Efficiency variance = (Actual hrs – Std hrs) x Std VOH rate
= (AH – SH) x VOAR

Fixed overhead
Expenditure variance = Actual FOH – Budgeted FOH
= AFOH – BFOH
Volume variance (output): = (Budgeted Output – Actual Output) * SFOHC/u

(input): = (Budgeted hours – Standard hours) * SFOHR/h

Volume capacity variance
Volume efficiency variance
= Budgeted FOH – (SH x SFOAR/h)
= BFOHC – (SH x SFOAR/h)
= Budgeted FOH – (actual hrs x std FOAR)
= BFOH – (AH x FOAR)
= (Actual hrs – Std hrs) x Std FOAR
= (AH – SH) x FOAR
Breakdown of Volume capacity and volume efficiency variances

Actual output (AO) Actual output (AO) Budgeted output (BO)

__________________________________________________________________________

[SH/u * AO]*SFOHR [AH/u * AO]*SFOHR [SH/u * BO] * SFOHR

= SH*SFOHR = AH * SFOHR = BH * SFOHR

Efficiency variance Volume variance

Volume variance

Basic Sales Variances Formulas

Sales variance
Method Formulas
Turnover
Price variance = (Actual SP – Std SP) x Actual Volume sold
= (ASP – SSP) x AV
Volume variance = (actual Volume sold – budgeted sales volume) x
Std SP
= (AV – BV) x SSP

Profit Margin
Price variance = (actual profit per unit – std profit per unit) x Actual
volume sold
= (APU – SPU) x ASV
Volume variance = (actual volume sold – budgeted sales volume) x Std
Profit per unit
= (ASV – BSV) x SPU

Contribution Margin
Price variance = (Actual Contr. Margin per unit – Std . Contr.
Margin per unit) x Actual sales volume
= (ACMU – SCMU) x ASV
Volume variance = (Actual volume sold – budgeted sales volume) x
Std unit contribution
= (ASV – BSV) x SCMU
Planning & Operating Variances Formulas

Planning variance:
Cost item:
If revised Std > Original Std = Adverse
If revised Std < Original Std = Favorable

Revenue item:
If revised Std > Original Std = Favorable

Operating variance:
Cost item:
If Actual > Revised Std = Adverse
If Actual < Revised Std = Favorable

Revenue item:
If revised Std > Actual = Adverse

Planning Variance
Material
Price = (Orig. Std. price – Revised Std. price) x
Revised Std Qty
Usage = (Orig. Std. Qty – Revised Std. Qty) x
Revised SP

Labour
Rate = (Orig. std. rate – Revised Std. rate) x Revised
Std hr
Efficiency = (Orig. std. hr – Revised Std. hr) x Orig Std
rate

Sales
Price = (Orig. Std. SP – Revised Std SP) x Revised
Budgeted sales volume
Margin volume = (Orig. Budgeted Sales vol. – Revised
Budgeted Volume) x Orig. Std. Profit
 Operating Variance
Material
Price = (Actual price – Revised Std. price) x Actual Qty
Usage = (Actual Qty – Revised Std. Qty) x Revised SP

Labour
Rate = (Actual rate – Revised Std. rate) x Actual hr
Efficiency = (Actual hr – Revised Std. hr) x Revised Std rate

Sales
Price = (Actual SP – Revised Std SP) x Actual sales
volume
Margin volume = (Actual vol. – Revised Budgeted Volume) x
Revised Std. Profit