BASIC VARIANCES

MATERIAL VARIANCES
Actual quantity purchased @ actual price

Actual quantity purchased @ standard price

Actual quantity used @ standard price

Standard quantity produced @ standard price

LABOUR VARIANCES
Actual hours paid @ actual rate

Actual hours paid @ standard rate

Actual hours worked @ standard rate

Standard hours worked @ standard rate

VARIABLE OVERHEAD VARIANCES

Actual variable overheads

Actual hours worked @ V.O.A.R

Standard hours worked @ V.O.A.R

VOAR = budgeted variable overheads/budgeted activity

If overheads are absorbed on units of production use actual quantity used instead of actual
hours worked and standard quantity produced to replace standards hours of actual production

FIXED OVERHEAD VARIANCES

Actual fixed overheads

Budgeted fixed overheads

Actual hours worked @ F.O.A.R

Standard hours worked @ F.O.A.R

FOAR = budgeted fixed overheads/budgeted activity
If overheads are absorbed on units of production use actual quantity used instead of actual
hours worked and standard quantity produced to replace standards hours of actual production

SALES VARIANCES
Actual quantity sold @ actual price

Actual quantity sold @ budgeted price

Actual quantity sold @ standard contribution per unit

Budgeted quantity sold @ standard contribution per unit

NOTE: Use standard profit per unit if the firm uses an absorption costing system. Contribution is

used when a marginal costing approach is needed.

MIX AND YIELD VARIANCES

Actual quantity @ actual proportions @actual price

Actual quantity @ actual proportions @ standard price

Actual quantity @ standard proportions @ standard price

Standard quantity @ standard proportions @ standard price

PLANNING AND OPERATIONAL VARIANCES

Original standard cost (standard quantity @ standard price)

Revised standard cost (standard quantity @ revised price)

Actual cost (actual quantity @ actual price)

 PLANNING PRICE & USAGE VARIANCES

Revised quantity @ revised price

Revised quantity @ standard price

Standard quantity @ standard price

OPERATIONAL PRICE & USAGE VARIANCES

Actual quantity @ actual price

Actual quantity @ revised price

Standard quantity @ revised price

PLANNING AND OPERATIONAL SALES VARIANCES

Original budgeted cost (budgeted quantity @ standard contribution/unit)

Revised standard cost (revised quantity @ standard contribution/unit)

Actual cost (actual quantity @ standard contribution/unit)