Sales Value Variance: This is the basic variance which can be calculated by making

comparison between the actual sales & budgeted sales. The formula is:
Budgeted Sales – Actual Sales

Two sub-variances constitute this basic variance, viz., (a) sales price
variance, & (b) sales volume variance.

Sales Price Variance: The comparison between actual sales value & actual sales at
standard values is done by Sales Price variance. The formula is:
Actual Sales – Standard Sales

Or, Actual Sales – Actual Sales at standard price

Or, (Actual price – Standard price)* Actual quantity sold

Sales Volume Variance: The comparison between budgeted sales & actual sales at
standard values are done by Sales Volume variance. The formula is:
Budgeted Sales – Standard Sales

Or, Budgeted Sales – Actual Sales at standard price

Or, (Budgeted quantity – Actual quantity) * Standard price

The sales volume variance can be sub-divided into two components (a) sales

Mix variance & (b) sales quantity variance, when sale of more than one
product is made.

Sales Mix Variance: The effect of variations from the planned sales mixture is
shown by the sales mix variance.

The formula is:

Standard Sales – Revised Standard Sales

Or, Standard price per unit * (Actual quantity at actual mix – Actual quantity
at standard mix)

Sales Quantity Variance:

The effect of the unit volume which varies from the budget is revealed by
the sales quantity variance.

The formula is:

Revised standard sales – Budgeted sales

Or, Standard price per unit * (Actual quantity at standard mix – Budgeted quantity
at standard mix)