Variance Equations

Question 1

Planning Variance

Answer 1

(ATS-STS) x SCM

Question 2

Static Budget Variance

Answer 2

Actual Income - Static Budget Income

Question 3

Flexible Budget Variance

Answer 3

Actual Income - Flexible Budget Income

Question 4

Selling Price Variance

Answer 4

(ASP-SSP) x AS

Question 5

DM Price Variance

Answer 5

(AP-SP) x AQ(actual # items per unit x AS)

Question 6

DM Quantity Variance

Answer 6

(AQ-SQa) x SP
(SQa = standard # items per unit x AS)

Question 7

DL Rate Variance

Answer 7

(AR-SR) x AH (actual hours per unit x AS)

Question 8

DL Efficiency Variance

Answer 8

(AH-SHa) x SR
(SHa=standard hours per unit x AS)

Question 9

VOH Rate Variance

Answer 9

(AR-SR) x AV (actual volume per unit x AS)

Question 10

VOH Efficiency Variance

Answer 10

(AV-SVa) x SR
(SVa=standard volume per unit x AS)

Question 11

Fixed Overhead Variance: Spending Variance

Answer 11

AFO - SFO

Question 12

Fixed Selling & Admin Variance: Spending Variance

Answer 12

AFS - SFS

Question 13

Sales Mix Variance

Answer 13

(AWi-SWi) x ATS x SCMi

Question 14

Sales Quantity Variance

Answer 14

(ATS-STS) x SWi x SCMi

Question 15

Market Size Variance

Answer 15

(AMSZ-SMSZ) x SMSH x WACM
(SMSH = STS / SMSZ)

Question 16

Market Share Variance

Answer 16

(AMSH - SMSH) x AMSZ x WACM
(AMSH = ATS / AMSZ)