VARIANCE ANALYSIS

ANALYSIS OF MANUFACTURING COSTS

Sales volume variance = (flexible budget units - stati budget Units! " (budgeted #nt$ibuti#n %a$gin &e$ unit!
Flexible budget variance = Atual - Flexible 'udget
Static budget variance = Stati budget ( atual $esults
Direct Materials Eicienc! Variance = )standa$d *uantit+ f#$ atual #ut&ut ( atual *uantit+ f#$ atual #ut&ut, "
standa$d &$ie f#$ %ate$ials
Direct Materials "rice Variance # )standa$d &$ie ( atual &$ie, " *uantit+ &u$-ased
"rice variance = (Atual unit &$ie - Standa$d unit &$ie! " Atual units &u$-ased
F#$ lab#$. s#%eti%es alled rate variance$
Eicienc! variance = (In&uts atuall+ used - In&uts t-at s-#uld -a/e been used! " Standa$d unit &$ie #f in&uts
F#$ %ate$ials. s#%eti%es alled %uantit! variance #$ usage variance
Variable over&ead eicienc! variance = (atual units #f all#ati#n based used - units #f all#ati#n base t-at s-#uld
-a/e been used! " budgeted $ate &e$ unit #f all#ati#n base
Variable over&ead s'ending variance = Atual #st - (atual in&uts " budgeted $ate! =
(Flexible-budget /a$iane - effiien+ /a$iane!
Fixed over&ead s'ending variance = Flexible budget /a$iane f#$ fixed #/e$-ead = Atual #st - budgeted #st
Fixed over&ead 'roduction volume variance = (den#%inat#$ /#lu%e in units #f standa$d in&uts - units #f standa$d
in&uts all#0ed f#$ atual #ut&uts! " budgeted fixed #/e$-ead $ate &e$ unit #f standa$d in&uts
O R = (den#%inat#$ /#lu%e in &$#dut units - atual #ut&uts in &$#dut units! " budgeted fixed #/e$-ead $ate &e$
&$#dut unit
Als# alled ca'acit! variance. activit! variance( denominator variance( idle ca'acit! variance #$
volume variance
Direct material !ield variance = (atual units #f %ate$ial in&uts used - standa$d units #f %ate$ial in&uts all#0ed f#$
atual #ut&uts! " standa$d a/e$age &$ie &e$ unit #f %ate$ial in&uts
Direct materials mix variance = )(atual %ate$ial %ix &e$entage - standa$d %ate$ial %ix &e$entage! " atual t#tal
units #f %ate$ial in&uts used, " )standa$d indi/idual &$ie &e$ unit #f %ate$ials in&uts - standa$d a/e$age &$ie
&e$ unit #f %ate$ial in&uts,
Direct labor !ield variance = (atual units #f lab#$ in&uts used - standa$d units #f lab#$ in&uts all#0ed f#$ atual
#ut&uts! " standa$d a/e$age &$ie &e$ unit #f lab#$ in&uts
Direct labor mix variance = )(atual lab#$ %ix &e$entage - standa$d lab#$ %ix &e$entage! " atual t#tal units #f
lab#$ in&uts used, " )standa$d indi/idual &$ie &e$ unit #f lab#$ in&uts - standa$d a/e$age &$ie &e$ unit #f
lab#$ in&uts,
SAL1S AN2 MAR31TING 4ARIANC1S
Sales %uantit! variance = (Atual sales /#lu%e in units - stati budgeted sales /#lu%e #f indi/idual &$#dut in units!
" budgeted a/e$age #nt$ibuti#n %a$gin &e$ unit
Sales mix variance = )(Atual sales %ix &e$entage - budgeted sales %ix &e$entage! " atual t#tal sales /#lu%e #f all
&$#duts in units, " )budgeted indi/idual #nt$ibuti#n %a$gin &e$ unit - budgeted a/e$age #nt$ibuti#n %a$gin
&e$ unit,
Mar)et si*e variance = 'udgeted %a$5et s-a$e &e$entage " (Atual indust$+ sales /#lu%e in units - budgeted
indust$+ sales /#lu%e in units! " budgeted a/e$age #nt$ibuti#n %a$gin &e$ unit
Mar)et s&are variance = (atual %a$5et s-a$e &e$entage - budgeted %a$5et s-a$e &e$entage! " atual indust$+ sales
/#lu%e in units " budgeted a/e$age #nt$ibuti#n %a$gin &e$ unit
6RO71CT 4ARIANC1S8
"ro+ect cost variance = Atual #st #f 0#$5 &e$f#$%ed t# date - budgeted #st #f 0#$5 performed t# date
"ro+ect sc&edule variance = 'udgeted #st #f 0#$5 scheduled t# date - budgeted #st #f 0#$5 &e$f#$%ed t# date
Cost o goods sold , manuacturing
'eginning in/ent#$+ $a0 %ate$ials
9 6u$-ases #f $a0 %ate$ials
9 F$eig-t-in
= Ra0 %ate$ials a/ailable
1nding in/ent#$+ $a0 %ate$ials
= Ra0 %ate$ials used in &$#duti#n
9 2i$et lab#$
9 Fat#$+ #/e$-ead
= Manufatu$ing #sts
'eginning 0#$5-in-&$#ess in/ent#$+
9 Manufatu$ing #sts
1nding 0#$5-in-&$#ess in/ent#$+
= C#st #f g##ds %anufatu$ed
'eginning in/ent#$+ ( finis-ed g##ds
9 C#st #f g##ds %anufatu$ed
= G##ds a/ailable f#$ sale
1nding in/ent#$+ -- finis-ed g##ds
= C#st #f g##ds s#ld