MPPV

(Actual Qty Purchased*std price-actual price)

MIX AND YIELD VARIANCE

MIX VARIANCE

YIELD VARIANCE

To produce 1 kg of chicken curry 800 g of chicken ad 200g of potato @ 3$ per kg,.75 per kg respectively.
Durig the period actual output of the chicken curry 20 kg by consuming 13 kg of chicken, 10 kg of potato respective

calculate mix ad yield variance, muv

sq
ao

muv
STD QTY

AQ USED

PRICE
MUV

ACTIVITY-1

STD QTY

AQ USED

PRICE

MUV
 OBC

236 WHITE FLOUR

STD QTY 427.5
AQ USED -408.5

19
STD PRICE 1.8

MUV 34.2

STEP:1 STD PROPOTION OF INPUT:WF:450:WG:150 YEAST:10

STEP:2 sq

STEP:3 aq used

STEP:4 INPUT
WF
WG
Y

MIX VARIANCE
WF
WG
Y

STEP:5 INPUT
WF
WG
Y

CRUMBLY CAKES

FLOUR
EGGS
BUTTER
SUGAR
 MUV

FLOUR
EGGS
BUTTER
SUGAR

STEP:1 STD PROPOTION OF INPUT:F:1 E:1 B:1 S:1

STEP:2 sq

STEP:3 aq used

STEP:4 INPUT
F
E
B
S
MIX VARIANCE
F
E
B
S
STEP:5 INPUT
F
E
B
S

YIELD VARIANCE TOTAL APPROACH

DYNAMITE:FLASH,BANG ILLUSTRATION 1

EACH FINISHED GOOD DYNAMITE REQUIRE 15 KG OF INPUT:

5 KG FLASH
10 KG BANG

DURING THE PERIOD ACTUAL OUTPUT PRODUCED 80 UNITS BY CONSUMING 600 KG OF FLASH AND 750 KG OF BAN

TOTAL QUANTITY USED

REQUIRED OUTPUT WITH ACTUAL QTY USED
ACTUAL OUTPUT
DIFFERENCE IN YIELD
YIELD VARIANCE
STANDARD MATERIAL COST OF ONE UNIT

TOTAL QUANTITY USED

REQUIRED OUTPUT WITH ACTUAL QTY USED
ACTUAL OUTPUT
DIFFERENCE IN YIELD
YIELD VARIANCE
STANDARD MATERIAL COST OF ONE UNIT

ACTIVITY 3

TOTAL QUANTITY USED

REQUIRED OUTPUT WITH ACTUAL QTY USED
ACTUAL OUTPUT
DIFFERENCE IN YIELD
YIELD VARIANCE
STANDARD MATERIAL COST OF ONE UNIT

KAPPA CO
MUV

ALPHA
BETA
GAMMA
TOTAL

STD PROPOTION OF INPUT:A:40 B:60 G:20

sq

aq used

INPUT
A
B
G

MIX VARIANCE
A
B
G

INPUT
A
B
G

YIELD VARIANCE TOTAL APPROACH

TOTAL QUANTITY USED

REQUIRED OUTPUT WITH ACTUAL QTY USED
ACTUAL OUTPUT
DIFFERENCE IN YIELD
YIELD VARIANCE
STANDARD MATERIAL COST OF ONE UNIT
MPV-A

POSSIBLE INTERDEPENDENCE

MPV-F
MUV-A

SALES VARIANCE

SV

PRICE VOLUME

YIELD MIX

SELLING PRICE VARIANCE

A LTD BUDGETED TO SELL 5000 UNITS AT40$ PER UNIT. DURING THE PERIOD 6000 UNITS WERE SOLD @38$ PER UN

CALCULATE SP VARIANCE
 -12000

SP VARIANCE
AO
BP

CALCULATE AP
AP

SP P&O VARIANCE

( AP)
ACTUAL BUDGET
OPERATIONAL
(AP-REV BP)*AO

ADITHYA LTD BUDGETED TO SELL 10000 UNNITS AT 25$ PER UNIT DUE TO SHORT SUPPLY OF FINISHED GOOD MAR

SP VARIANCE

PLANNING

OPERATIONAL

ELM CO

SP VARIANCE

PLANNING

OPERATIONAL

SALES VOLUME VARIANCE

IT IS A STATIC BUDGET VARIANCE IN ORDER TO CALCULATE IT WE HAVE TO IDENTIFY THE METHOD OF COSTING FO
IN CASE OF M C

SALES VOLUME VARIACE

IN CASE OF ABSORPTIONN COSTING

VOLUME VARIANCE

BLOCK CO

W1:CALCULATION OF F.C PER UNIT

1) CALCULATION OF TMH FOR THE QUARTER

PRODUCT
COMM1
COMM2
COMM3

CALCULATION OF F.C PER MACHINE HR

CALCULATION OF F.C PER UNIT

PRODUCT
COMM1
COMM2
COMM3

CALCULATION OF STD P/M / UNIT

PRODUCT
COMM1
COMM2
COMM3

S.V P&O VARIANCE

Total Demand for a biryani in a calicut 15000 units which is held by

paragon-40%
rahmat-35%
kbc-25%

so the budgeted output of paragon will be -50000

paragon

on a day demand for the biryani increases to 200000 due to conference by arp. So generally the revised budgeted

80000

reason behind this case is market size.

if standard contribution per unit=4$, s.v planning variance or market size variance will be:

(revised b&o- budgeted output)*std profit margin/std contribution

240000

DURING THAT DAY ACTUAL DEMAND MET BY PARAGON WAS 45000 UNITS ONLY. THIS IS DUE TO POOR PERFORMA

( ActuaLoutput-Revised budgeted output)*std profit margin/std contribution

CALCULATION OF MARKET SHARE VARIANNCE

-140000

CALCULATE S.V.V, P&O VARIANCE

BUDGETED OUTPUT

DURING THE PERIOD MARKET DEMAND INCREASED BY 20%.ACTUAL OUTPUT SOLD BY THE COMPANY 55000. STD C
MAR DEM 240000
R.B.O 36000
S.V.V 150000

P.V 36000

O.V 114000

BUDGETED DEMAND

SO BMD

DURING THE PERIOD MD DECLINED BY 5%

SALES MIX AND YIELD(QUANTITY) VARIANCE

STEPS TO CALCULATE MIX AND YIELD:

1) IDENTIFY THE STANDARD MIX AND BUDGETED OUTPUT

2) IDENTIFY THE ACTUAL OUTPUT AND CALCULATE AQ IN STANDARD MIX
3) MIX VARIANCE=(AO-RAO)*S.CPU/PROFIT
4) QUANTITY VARIANCE OR YIELD VARIANCE=(RAO-BO)*S.CPU/PROFIT

S.V.V(CC)
S.V.V(SS)
 ( AO)

MIX
(AO-REV AO)*STD CPU/PROFIT

STEP:2 RAO

CC
SS

CC
SS

CLEAR CO

REVISED AO(RLE AND ICL)

MIX

YIELD

BLOCK CO (HOMEWORK)

VALET C.O

REVISED AO(FULL AND MINI)

MIX

QUANTITY VARIANCE

SALES QUANTITY VARIANCE IN CONTRIBUTION OR PROFIT DUE TO CHANGES IN SALES VOLUME FROM B.S.V BOTH
BIRCH CO
MIC CO
SECURE NET
SU CO

READ BOTTOM UP AND TOP DOWN BUDGET MAXIMUM 3 MERIT AND DEMERIT
 r kg,.75 per kg respectively.
g of chicken, 10 kg of potato respectively

16 4
12 8

4 -4

12 -3
F A
FLASH BANG
400 800

600 750

-200 50
2 3
 -400 150

ONION TOMATO
500 500

600 900

-100 -400
2 4

-200 -1600
WHOLEGRAIN FLOUR YEAST
142.5 9.5
152 10

-9.5 -0.5
2.2 20

-20.9 -10

427.5 142.5

408.5 152

WF

420.860655737705

SQ FOR AO REVISED AQ
427.5 420.860655737705
142.5 140.286885245902
9.5 9.35245901639344

REVISED AQ AQ USED
420.860655737705 408.5
140.286885245902 152
9.35245901639344 10

SQ FOR AO REVISED AQ
427.5 420.860655737705
142.5 140.286885245902
9.5 9.35245901639344

-57 A
-990 A
-660 A
-458 A
 -2165

6000 5700
6000 6600
6000 6600
6000 4578

6000 6000

5700 6600

5869.5

SQ FOR AO REVISED AQ
6000 5869.5
6000 5869.5
6000 5869.5
6000 5869.5
REVISED AQ AQ USED
5869.5 5700
5869.5 6600
5869.5 6600
5869.5 4578
SQ FOR AO REVISED AQ
6000 5869.5
6000 5869.5
6000 5869.5
6000 5869.5
600 KG OF FLASH AND 750 KG OF BANG

1350
90
80
10 (LOSS)
400
40

1500
150
100
50 (LOSS)
1500 A
30

4950 45
4500
4800
300
6900 F
23
 1840 2200
2760 2500
920 920
5520

1840 2760

2200 2500

1873.33333333333

SQ FOR AO REVISED AQ
1840 1873.33333333333
2760 2810
920 936.666666666667

REVISED AQ AQ USED
1873.33333333333 2200
2810 2500
936.666666666667 920

SQ FOR AO REVISED AQ
1840 1873.33333333333
2760 2810
920 936.666666666667

5620
4683.33333333333
4600
83.3333333333339
333.333333333336
4
 MPV-F,LEV-A
MIX VARIANCE-F, YIELD VARIANCE-A

LRV-F,LEV-A

SPV-A, SALE VOLUME VARIANCE-F

ACTUAL OUTPUT*(AP-BP)

AP=ACTUAL PRICE
BP=BUDGETED PRICE

6000 UNITS WERE SOLD @38$ PER UNIT

 A

2400F
800 UNIT
16

19

SPV=(AP-SP)*AO

(RP) (BP)
ORGINAL BUDGET
PLANNING
AO*(REV BP-BP)

HORT SUPPLY OF FINISHED GOOD MARKET PRICE BECOME 30$ AD COMPANY DECIDED TO REVISE THE STANDARD TO IT. DURING THE PER

33000

55000

-22000

22000 F

44000 F

-22000 A

DENTIFY THE METHOD OF COSTING FOLLOWED BY THE ENTITY.ie MARGIAL COSTING,ABSORPTION COSTIG
((AO-BO)*STD CPU)) ELM CO-SVV

STD CPU-(S/P-V.C) -12000

(AO-BO)*STD PROFIT MARGIN

(SP-V/C-F/C PER UNIT)

IMP
NOS MACHINE HR/UNIT
30000 0.2
28000 0.6
26000 0.8

MACHINE HR/UNIT F.C @ MACHINNE HR*4$

0.2 0.8
0.6 2.4
0.8 3.2

SP V.C
30 18
35 28.4
41.6 26.4
 20000

rp. So generally the revised budgeted output of paragon could be

iance will be:

ONLY. THIS IS DUE TO POOR PERFORMACE OF SALES TEAM OF PARAGON. SO SALES VOLUME O&V OR MARKET SHARE VARIACE

30000 WHICH IS 15% OF MARKET DEMAND(BUDGETED MARKET SHARE)

T SOLD BY THE COMPANY 55000. STD CONTRIBUTION PER UNIT 6$

F

504000 WHICH IS 18% OF BUDGETED MARKET DEMAND

2800000

ACTUAL MARKET SIZE 2660000

RBO 478800
ACTUAL OUTPUT 532000

SVV 336000
MARKET SIZE VARIANCE -302400

MARKET SHARE VARIANCE 638400

ILL-2
"4:3"

-600 A
990 F

VOLUME VARIANCE
(AO-BO)*STD CPU/PROFIT
 (RAO) (BO)

YIELD
STD CPU/PROFIT*(AO-REV BO)

AO RAO
280 520
630 390
910 910
AO RAO
280 520
630 390

RLE ICL

3764.79289940828 1325.20710059172
1325.20710059172

876497.041420118 -913017.75147929
F A

35502.9585798817 12500

FULL MINI

5130 2850
-16.68 -83.35

-25199 18645

34119 14025

8920 32670

IN SALES VOLUME FROM B.S.V BOTH IN STD MIX

STEP-1
sq
aq used

muv

STEP-1 MIX AND YIELD VARIANCE

IDENTIFY THE PROPOTION OF

IN THE ABOVE CASE
CHICKEN: POTATO

STEP-2 CALCULATE STD QTY FOR ACTU

ACTUAL OUTPUT*STD QTY PER

STEP:3 CALCULATE ACTUAL QTY IN ST

 TOTAL ACTUAL QTY USED IN T

STEP:4 MIX VARIANCE=

STEP:5 YIELD VARIANCE=

STEP:1 STD PROPOTION OF INPUT:CH

STEP:2 sq

STEP:3 aq used

STEP:4 INPUT
CHICKEN
POTATO

MIX VARIANCE
CHICKEN
POTATO

STEP:5 INPUT
CHICKEN
POTATO

STEP:1 STD PROPOTION OF INPUT:FLA

STEP:2 sq

STEP:3 aq used
STEP:4 INPUT
FLASH
BANG

MIX VARIANCE
FLASH
BANG

STEP:5 INPUT
FLASH
BANG

STEP:1 STD PROPOTION OF INPUT:FLA

STEP:2 sq

STEP:3 aq used

STEP:4 INPUT
ONION
TOMATO

MIX VARIANCE
ONION
TOMATO

STEP:5 INPUT
ONION
TOMATO
 3.3

9.5

10 570.5

WHF Y

140.286885245902 9.35245901639344

AQ USED SP
408.5 1.8
152 2
10 20

SP MIX VARIANCE
1.8 22.2491803278689 F
2.2 -25.768852459016 A
20 -12.950819672131 A

SP YIELD VARIANCE
1.8 11.9508196721312 F 34.2
2.2 4.86885245901642 F -20.9
20 2.95081967213115 F -10

TOTAL 3.3
 300 0.12 36
-600 0.7 -420
-600 1.7 -1020
1422 0.5 711

MUV -693 A

6000 6000

6600 4578 23478

E B S

5869.5 5869.5 5869.5

AQ USED SP
5700 0.12
6600 0.7
6600 1.7
4578 0.5
SP MIX VARIANCE
0.12 20.34 F
0.7 -511.35 A
1.7 -1241.85 A
0.5 645.75 F
SP YIELD VARIANCE
0.12 15.66 F 36
0.7 91.35 F -420
1.7 221.85 F -1020
0.5 65.25 F 711
TOTAL -693
29000
2900
3000
100
6800
68
 -360 2 -720
260 5 1300
0 1 0

MUV 580 F

920 5520

920 0 5620

B G T

2810 936.666666666667 5620

AQ USED SP
2200 2
2500 5
920 1

SP MIX VARIANCE
2 -653.33333333333 A
5 1550 F
1 16.6666666666666 F
913.333333333333
SP YIELD VARIANCE
2 -66.666666666667 A -720
5 -250 A 1300
1 -16.666666666667 A 0
-333.33333333333 TOTAL 580
 800*(X-16)=2400

ME 30$ AD COMPANY DECIDED TO REVISE THE STANDARD TO IT. DURING THE PERIOD 11000 UNNITS WERE SOLD AT 28$ PER UNIT CALCU

ENTITY.ie MARGIAL COSTING,ABSORPTION COSTIG

A

TOTAL MACHINE HOURS SVV SPV SPPV

6000 -2240 29800 65560
16800 10080 -30400 -56240
20800 -4800 -30720 -64000

43600 3040 -31320 -54680

F.C
0.8 11.2
2.4 4.2
3.2 12
M OF PARAGON. SO SALES VOLUME O&V OR MARKET SHARE VARIACE

OF MARKET DEMAND(BUDGETED MARKET SHARE)

OF BUDGETED MARKET DEMAND

F
BO
400
300
700
STD PROFIT/UNIT MIX VARIANCE QUANTITY VARIANCE
5 -1200 A 600
3 720 F 270

STD CONTRIBUTION
2400
2500

7980
-50 -150.03

-6554

48144

41590
 16 4
13 10

3 -6

9 -4.5
F A

ND YIELD VARIANCE

FY THE PROPOTION OF INPUT AS PER STANDARD:

ABOVE CASE
EN: POTATO .8:2

LATE STD QTY FOR ACTUAL OUTPUT:

L OUTPUT*STD QTY PER UNIT

LATE ACTUAL QTY IN STANDARD MIX:

 ACTUAL QTY USED IN THE PROPOTION OF STD MIX

(REV ACTUAL QTY-ACTUAL QTY USED)*STD PRICE

(STD QTY FOR ACTUAL OUTPUT-REVISED STD QTY)*STD PRICE

ROPOTION OF INPUT:CHICKEN:.8:POTATO:.2

16 4

13 10 23

c p

18.4 4.6

SQ FOR AO REVISED AQ AQ USED SP

16 18.4 13 3
4 4.6 10 0.75

REVISED AQ AQ USED SP MIX VARIANCE

18.4 13 3 16.2 F
4.6 10 0.75 -4.05 A

SQ FOR AO REVISED AQ SP YIELD VARIANCE

16 18.4 3 -7.2 A
4 4.6 0.75 -0.45 A

ROPOTION OF INPUT:FLASH:.5:BANG:.10

400 800

600 750 1350

c p
 450 900

SQ FOR AO REVISED AQ AQ USED SP

400 450 600 2
800 900 750 3

REVISED AQ AQ USED SP MIX VARIANCE

450 600 2 -300 A
900 750 3 450 F

SQ FOR AO REVISED AQ SP YIELD VARIANCE

400 450 2 -100 A
800 900 3 -300 A

-400
150

ROPOTION OF INPUT:FLASH:5:BANG:5

500 500

600 900 1500

c p

750 750

SQ FOR AO REVISED AQ AQ USED SP

500 750 600 2
500 750 900 4

REVISED AQ AQ USED SP MIX VARIANCE

750 600 2 300 A
750 900 4 -600 F

SQ FOR AO REVISED AQ SP YIELD VARIANCE

500 750 2 -500 A
500 750 4 -1000 A
 -200 A
-1600 A
AT 28$ PER UNIT CALCULATE SP VARINCE, SP PLANNING VARIANCE, SP OPERATIONAL VARIANCE
SPOV
-35760
25840
33280

23360 -31320
TITY VARIANCE
F
F

26700
16020
10680

2160
1560

3720
33000 44550 11550 11000 550
20000 34200 14200 12000 2200

2750

7500
9800
10000

27300
14500

408.5 420.8607 12.36066 450 22.24918

152 140.2869 -11.71311 150 -25.76885
10 9.352459 -0.647541 10 -12.95082

-16.47049

0.004
4.67622950819672

125
29.13934 1.8 52.45082
9.713115 2.2 21.36885
0.647541 20 12.95082

39.5 86.77049