Variance Analysis

Question 1

DM Price Variance

Answer 1

Actual Qty Purchased * (Actual price - Std price)

Question 2

DM Quantity Usage Variance

Answer 2

Standard Price * (Actual Qty used - Std qty allowed)

Question 3

DL Rate Variance

Answer 3

Actual hours worked * (actual rate - std rate)

Question 4

DL efficiency variance

Answer 4

std rate * (actual hrs worked - std hrs allowed)

Question 5

VOH rate ( spending) variance

Answer 5

Actual hrs * (actual rate - std rate)

Question 6

VOH efficiency variance

Answer 6

std rate * (actual hrs - std hrs allowed for actual production volume)

Question 7

FOH budget (spending) variance

Answer 7

Actual fixed OH - Budgeted fixed OH

Question 8

FOH volume variance

Answer 8

budgeted fixed OH - Std fixed OH cost allocated to production

Question 9

sales price variance

Answer 9

(actual SP per unit - budgeted SP per unit) * Actual units sold

Question 10

sales volume variance

Answer 10

(actual sold units - budgeted sales units) * Std contribution margin per unit

Question 11

the difference between the actual amounts and the flexible budget amounts for actual output achieved…

Answer 11

Flexible budget variance