LABOR VARIANCE

SR × SH SR × RSH SR × AHW SR × AHP AR × AHP

L MIX V IDLE TIME V L RATE V

L EFFICIENCY V

SR = STANDARD RATE
SQ = STANDARD QUANTITY
RSQ = REVISED STANDARD QUANTITY = total weight of actual mix × standard quantity
total weight of standard mix

AP = ACTUAL PRICE
AQ = ACTUAL QUANTITY

MMV = MATERIAL MIX VARIANCE = SP ( RSQ - AQ)

MPV = MATERIAL PRICE VARIANCE = AQ ( SP – AP)
MQV = MATERIAL QUANTITY OR USAGE VARIANCE= SP ( SQ – AQ)
MCV = MATERIAL COST VARIANCE = (SP × SQ) – (AP ×AQ)
MYV = MATERIAL YIELD VARIANCE

= standard cost per unit × (standard production for actual mix - actual production)

standard production for actual mix = standard production × total actual Qty. of materials
total std. Qty. of materials

IF ACTUAL IS MORE THEN STANDARD = ADVERSE

IF ACTUAL IS LESS THEN STANDARD = FAVOURABLE
 Material variance

SP × SQ SP × RSQ SP × AQ AP × AQ

MMV MPV

MQV

MCV

SP = STANDARD PRICE
SQ = STANDARD QUANTITY
RSQ = REVISED STANDARD QUANTITY = total weight of actual mix × standard quantity
total weight of standard mix

AP = ACTUAL PRICE
AQ = ACTUAL QUANTITY

MMV = MATERIAL MIX VARIANCE = SP ( RSQ - AQ)

MPV = MATERIAL PRICE VARIANCE = AQ ( SP – AP)
MQV = MATERIAL QUANTITY OR USAGE VARIANCE= SP ( SQ – AQ)
MCV = MATERIAL COST VARIANCE = (SP × SQ) – (AP ×AQ)
MYV = MATERIAL YIELD VARIANCE

= standard cost per unit × (standard production for actual mix - actual production)

standard production for actual mix = standard production × total actual Qty. of materials
total std. Qty. of materials

IF ACTUAL IS MORE THEN STANDARD = ADVERSE

IF ACTUAL IS LESS THEN STANDARD = FAVOURABLE