Ch12: Variance Analysis

Question 1

Proforma for Calculating:
Sales Volumes Variance

Answer 1

ACTUAL Sales
BUDGETED Sales

MULTIPLY STANDARD Price

Question 2

Proforma for Calculating:
Sales Price Variance

Answer 2

ACTUAL Sales * ACTUAL Price
ACTUAL Sales * BUDGETED Price

Question 3

Proforma for Calculating:
Labour Efficiency Variance

Answer 3

ACTUAL Labour Hours Worked
ACTUAL Production * BUDGETED Labour Hours

MULTIPLY STANDARD Labour Rate

Question 4

Proforma for Calculating:
Labour Rate Variance

Answer 4

ACTUAL Hours Worked * ACTUAL Labour Rate
ACTUAL Hours Worked * BUDGETED Labour Rate

Question 5

Proforma for Calculating:
Variable Overhead Efficiency Variance

Answer 5

ACTUAL Labour Hours Worked
ACTUAL Production * BUDGETED Labour Hours

MULTIPLY Variable Overhead Rate Per Hour

Question 6

Proforma for Calculating:
Variable Overhead Rate Variance

Answer 6

ACTUAL Variable Overhead Costs
ACTUAL Labour Hours * BUDGETED Variable Overhead Rate Per Hour

Question 7

Proforma for Calculating:
Fixed Overhead Volume Variance (EFFICIENCY)

Answer 7

ACTUAL Production
BUDGETED Production

MULTIPLY BUDGETED Fixed Overhead Rate Per Hour