FORMAT VARIANCES

.
Material variances

AQ x AP AQ x SP SQ x SP

Material price variance Material usage variance

Material Cost Variance

Labour variances

AH x AR AH x SR SH x SR

Labour rate variance Labour efficiency variance

Direct labour cost Variance

Variable overhead variances

AH x AR AH x SR SH x SR

VOH expenditure variance VOH efficiency variance

Variable overhead cost variance

Fixed overhead variances.

AH x AR BH x SR AH x SR SH x SR

FOH Expenditure FOH capacity variance FOH efiiciency variance

variance

FOH Volume variance

I
FOH Cost Variance
Sales turnover variances

AQ x AP AQ x SP BQ x SP

Sales turnover price variance Sales turnover volume variance

Sales Turnover Value Variance

Sales margin variances

AQ x AM AQ x SM BQ x SM
AQ x (AP – SC) AQ x (SP –SC) BQ x (SP – SC)

Sales margin price variance Sales margin volume variance

Sales Margin Value Variance

Material variances - If actual quantity purchase and usage are not same. (There is
closing stock of material)

Material variances

AQ(purchase) x AP AQ(purchase) x SP AQ(usage) x SP SQ x SP

Material price variance Material usage variance

Labour variances – If actual hours paid and worked are not same. (Idle time occur)

Labour variances

AH(paid) x AR AH(paid) x SR AH(worked) x SR SH x SR

Labour rate variance Idle time variance Labour efiiciency variance