STATIC BUDGET VARIANCE

=Actual results – Static Budget Amount

SALES VOLUME VARIANCE

FLEXIBLE BUDGET VARIANCE = ( Actual Sales quantity in units – Static budget sales quantity in units)
= Actual results – Flexible budget Amount × Budgeted CM per unit

SPENDING EFFICIENCY/USAGE SALES MIX VARIANCE SALES QUANTITY VARIANCE

VARIANCE VARIANCE = Actual units of all products sold× = (Actual units of all products sold
Actual Input Standard Price (Standard ( Actual Sales mix %age – – Budgeted units of all products sold) ×
(Standard Price – Input – Actual Input) Static budget sales mix %age ) Budget sales mix %age ) ×
Actual Price) × Budgeted CM per unit Budgeted CM per unit

YIELD MARKET SHARE VARIANCE MARKET SIZE VARIANCE

VARIANCE MIX VARIANCE = Actual Market Size in units × = (Actual Market Size in units – budgeted
Standard Price (Standard Input (Actual market share – Budgeted market market size in units) × Budgeted market
(Standard Input Proportion –Actual Input Share) × Budgeted CM per composite Share × Budgeted CM per composite
– Actual Input) Proportion) Standard unit for budgeted mix unit for budgeted mix
Standard input Price Actual Input
proportion