Standard Costing

Formulae Total Profit Variance | Selling Price Variance | Profit/Sales Margin Volume Variance | Total Cost Variance |

-----------------------------------------------------------------------------------------------------------------| | | | Material cost Labour Cost Variable o/h Fixed o\h cost Variance Variance Variance Variance | | | | ---------------------------------------------------------------- -------------------------| | | | | | | | MPV MUV LRV LEV Exp. Eff. Bugdet Volume | | | ---------------- -------------------------------------------------------| | | | | | | | | MMV MS-UV LMV IDLE LS-EV Calender Capcity Idle Efficiency TIME Time

Sales Variances 1. 2. 3. 4. 5. Total Sales Varianc Selling Price Variance Sales Volume Variance Sales Mix Variance Sales Sub-Qty. Variance = Actua;l sales - Standard Sales = AQ Sold ( Act. SP - Std. SP) = Std. Sp (AQ Sold - SQ Sold) = Std.SP ( AQ sold in AQ sold in ) Act. Ratio Std. Ratio = Std. Avg. SP ( Total AQ sold- Total SQ)

Profit Variances 1. Total Profit Variance 2. Selling Price Variance 3. Sales Margin Volume Variance 4. Total Cost Variance = Actual Profit -- Standard profit For the month for the month

= AQ sold ( ASP SSP) = Std. Profit per unit ( AQ sold -- SQ sold) = Total std. cost for -- Total Actual Costs for Actual Production Actual Production

Material Varinaces 1. 2. 3. 4. Material Cost variance Material Price Variance Material Usage Variance Material Mix Variance = StandardCost - Actual; Cost = Actual Qty. ( Std. Price _ Actual price) = Std Price ( Std Qty. Actual Qty.) = Std ( Actual Qty - Actual Qty. ) Price ( in.Std.Ratio in Std. Ratio) =Avg. Std(Total Std. Qty. Total Actual Qty.) Price

5. Material Sub-Usage Variance

Labour Variances 1. 2. 3. 4. 5. Labour Cost Variance Labour Rate Variance Labour Efficiency Variance Labour Idle Time Variance Labour Mix Variance = Std. Cost - Actual Cost = Actual Hrs. ( Std Rate Act. Rate) = Std. Rate ( Std. Hrs - Actual Hrs.) = Std Rate X Idle Time = Std ( Actual Hrs - Actual Hrs. ) Rate ( in.Std.Ratio in Std. Ratio) =Avg. Std ( Total Std. Hrs. Total Actual Hrs..) Rate

6. .Labour Sub-efficiency Variance

Variabla Overhead Variance 1. Variable o/h variance 2. Variable Expenditure Variance 3. Variable Efficiency Variance = Std. Cost Actual Cost =Actual Hrs. ( Std Rate Act. Rate) = Std. Rate ( Std. Hrs - Actual Hrs.)

Fixed Overhead Variances Notes 1. 2. 3. 4. 5. 6. 7. Recovery rate/ unit = Budgeted Foh / Budgeted Units Recovery rete / hour = Budgeted Foh/ Budgeted Hours Recovery rate/ Day = Budgeted Foh/ Budgeted Days Recovered Foh = RR/unit X Actual Units Std. hours for actual production Budgeted hours in actual days Idle time Fixed o/h cost variance Fixed o/h Budg. Variance Fixed o/h Volume Variance Capacity Variacne Calender Variance Idle Time Variance Fixed Efficiency Variance =Recovered Foh Actual Foh = Budgeted Foh Actual Foh =Recovered Foh Budgeted Foh = RR/hr ( Act. Hrs Budg. Hrs in Act.l Days) = RR/Day ( Days lost / gain) = RR/Hr X Idle Time = RR/Hr ( Std. hrs for Act. Prod.Actual Act. Hrs.)