STANDARD TILE INPUT COST VARIANCE ANALYSIS

Standard Input for 1000 sq. meters

K.g.
A 1200
B 500
C 800

Standard 4500 sq. meters

Kg. Rs./Kg Total Static Budget: Prepared at the Beginning of the Year
A 5400 0.3 1620
B 2250 0.6 1350
C 3600 0.8 2880
5850

Actual 5000 sq. meters Actual

Kg. Rs./Kg Total
A 7000 0.35 2450
B 3000 0.7 2100
C 5000 0.75 3750
8300

Total DM Cost Variance -2450 UF

Flexible Budget 5000 sq. meters Flexible Budget: Prepared before conducting variance analysis
KG Rs./Kg Total (Std Qty pu x Actual Production)
A (1200x5) 6000 0.3 1800
B (500x5) 2500 0.6 1500
C (800x5) 4000 0.8 3200
6500

Prod. Volume Variance = Budget for 4500- Flex. Budget for 5000
-650 UF
Flexible Budget Variance = Flex. Budget for 5000 - Actual Cost for 5000
-1800 UF

Flexible Budget Variance = Price Var. + Usage Var.

DM Price Variance = (Std. Price pu - Actual Price pu) x Total Actual Quantity
Std. Price Act. Price Act. Qty. Variance
A 0.3 0.35 7000 -350 UF
B 0.6 0.7 3000 -300 UF
C 0.8 0.75 5000 250 F
-400 UF

DM Usage Variance = [(Std Qty pu x Actual Production) - Total Actual Quantity] x Std Price pu
Std. Qty Ac. Qty Std Price Variance
A 6000 7000 0.3 -300 UF
B 2500 3000 0.6 -300 UF
C 4000 5000 0.8 -800 UF
-1400 UF

DM Usage Variance = Mix Var. + Yield Var.

DM Mix Variance = (Actual Qty @ Std Mix- Actual Qty @ Actual Mix) x Std Price
Std Qty @ Act. Qty @ Act. Qty @
Std Mix Mix Ratio Std. Mix Act. Mix Std Price Variance
A 6000 0.48 7200 7000 0.3 60 F
B 2500 0.2 3000 3000 0.6 0
C 4000 0.32 4800 5000 0.8 -160 UF
 12500 15000 -100 UF

DM Yield Variance = (Std Qty @ Std Mix - Actual Qty @ Std Mix) x Std Price
Std Qty @ Act. Qty @
Std Mix Std. Mix Std Price Variance
A 6000 7200 0.3 -360
B 2500 3000 0.6 -300
C 4000 4800 0.8 -640
-1300 UF

Summary Total Variance -2450 UF

Production volume variance -650 UF
Flexible Budget variance -1800 UF
(a) Price variance -400 UF
(b) Usage variance -1400 UF
(i) Mix Variance -100 UF
(ii) Yield variance -1300 UF