B4.M7 - Variance Analysis

Question 1

How to calculate the DM Price Variance?

Answer 1

ACT. Qty. Purchased x (ACT. Price - STD. Price)

Question 2

How to calculate the DM Qty. Usage Variance?

Answer 2

STD. Price x (ACT. Qty. Used - STD. Qty. Allowed)

Question 3

How to calculate the DL Rate (price) Variance?

Answer 3

ACT. Hours x (ACT. Rate - STD. Rate)

Question 4

How to calculate the DL Efficiency Variance?

Answer 4

STD. Rate x (ACT. Hours - STD. Hours)