Variance Calculations Flashcards
How to calculate the labour variance?
SHOULD = actual hours paid x the standard rate per hr
DID - actual hours paid did cost
Should - did = x
How to calculate the labour efficiency variance?
SHOULD - actual units x standard hours per unit
DID - actual production did take (hrs)
THEN value the difference at the standard £ per hour
How to calculate idle time variance?
Should - hours worked
Did - hours paid
Then the difference from the above X the std OAR OR £ per hr
How to calculate total materials variance?
Should - actual units x amount kg per unit x std £ per unit
Did - actual material used cost
How to calculate Material price variance?
SHOULD - actual kg x std £ per kg
DID - actual purchases cost
How to calculate materials usage variance?
SHOULD - actual units x std kg/unit
DID - actual production did use
THEN; x std cost to find diff in terms of £
How to calculate total variable overheads variance?
SHOULD - actual units should cost x
DID - actual variable overheads did cost (x)
How to calculate variable overhead price variance?
SHOULD - actual hours worked x standard cost / hr
DID - actual hours worked did cost
How to calculate variable overhead efficiency variance?
SHOULD - actual production should take (units x hrs per unit)
DID actual hours
THEN; value hrs at std £ per hour
How to calculate total FOH variance?
Budgeted FOH X
Actual FOH (x)
How to calculate FOH volume variance?
SHOULD : budgeted production units
DID : actual production units
THEN; difference valued at standard OAR / hr
How to calculate FOH efficiency?
Should - expected standard hours (flexed)
Did - actual hours
THEN; value at OAR per hour
How to calculate FOH capacity?
SHOULD : budgeted hours
DID : actual hours
THEN: diff x std OAR / hr
