Standard Costing

Question 1

Standard Cost Card

Answer 1

Standard Quantity or Hours x Standard Price or Rate = Standard Cost per unit

Question 2

Total Material Variance

Answer 2

Standard Quantity x Standard Price - Actual Quantity x Actual Price

SQ x SP - AQ x AP

Question 3

Materials Price Variance

Answer 3

Actual Quantity (Standard Price - Actual Price)

AQ (SP - AP)

Use total quality purchased

Question 4

Materials Usage Variance

Answer 4

Standard Price (Standard Quantity - Actual Quantity)

SP (SQ - AQ)

Question 5

Total Labour Variance

Answer 5

Standard Rate x Standard Hours - Actual Rate x Actual Hours

SR x SH - AR x AH

Question 6

Labour Rate Variance

Answer 6

Actual Hours (Standard Rate - Actual Rate)

AH (SR - AR)

Question 7

Labour Efficiency Variance

Answer 7

Standard Rate (Standard Hours - Actual Hours)

SR (SH - AH)

Question 8

Total Overhead Variance

Answer 8

Standard Hours x Standard Rate - Actual Hours x Actual Rate

SH x SR - AH x AR

Question 9

Spending/Expenditure Variance

Answer 9

Actual Hours (Standard Rate - Actual Rate)

AH (SR - AR)

Question 10

Efficiency Variance

Answer 10

Standard Rate (Standard Hours - Actual Hours)

Question 11

Sales Price Variance

Answer 11

Actual Sales (Actual Price - Standard Price)

AQ (AP - SP)

Question 12

Sales Volume Variance

Answer 12

Standard Marginal Contribution (Actual Sales - Budgeted Sales)

SMC (AQ - BQ)