Advanced Variances

Question 1

what is the formula for sales volume variance?

Answer 1

(actual units sold - budgeted units) * standard profit

Question 2

what is the formula for fixed overhead volume variance?

Answer 2

(actual output - budgeted output) * standard rate * standard hours

Question 3

what is the formula for labour rate variance?

Answer 3

(standard rate - actual rate) * actual hours

Question 4

what is the formula for material usage variance?

Answer 4

(standard quantity for actual output - actual quantity used) * standard price

Question 5

what is the formula for labour efficiency variance?

Answer 5

(standard hours for actual output - actual hours) * standard rate

Question 6

what is the formula for sales profit variance?

Answer 6

(actual profit - standard profit) * actual quantity sold

Question 7

what is the formula for material price variance?

Answer 7

(standard price - actual price) * actual quantity used

Question 8

what is the formula for fixed overhead expenditure variance?

Answer 8

budgeted overhead - actual overhead

Question 9

what is the formula for material mix variance?

Answer 9

(actual quantity in standard mix - actual quantity) * standard price

Question 10

what is the formula for material yield variance?

Answer 10

(actual output - expected output) * standard cost per unit

Question 11

what is the formula for material price operational variance?

Answer 11

(revised standard price - actual price) * actual quantity used