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CA Rahul Panchal 1.

Standard Costing
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(1st Day) (Last Day)
Standard Profit Actual Profit

Net Profit Variance

COST VARIANCES SALES VARIANCES

1. MATERIAL 2. LABOUR 3. VARIABLE OH 4. FIXED OH

VARIANCES VARIANCES VARIANCES VARIANCES

1. MATERIAL VARIANCES 2. LABOUR VARIANCES

Table Table
+F Standard Comparable Standard Actual + F Standard Comparable Standard Actual
-A Output Actual Output Actual Output - A Output Actual Output Actual Output 1 2 1-2
Type Qty SQ SP SC AQ AP AC Type Hours SH SR SC AHP AR AC AHP Idle Hours AHW
A A
B B
TSQ TSC TAQ

al TSH TSC TAHW

h
A : B Ratio A : B Ratio
Std Mix Std Mix
nc Std Mix Std Mix

a
RSQ RSQ RSH RSH

l P
u
Diagram COST Diagram COST
(SC-AC)
h (SC-AC)

Ra
CA
PRICE USAGE RATE IDLE TIME EFFICIENCY
(SP-AP)×AQ (SQ-AQ)×SP (SR-AR)×AHP Idle Hours × SR ( SH-AHW )×SR
(Always Adverse)

MIX COMPOSITION YIELD / SUB-USAGE MIX / GANG COMPOSITION YIELD / SUB-EFFICIENCY

( Std
Mix
-
Actual
Mix
SP
)× ( TSQ-TAQ ) × TSC
TSQ ( of AHW
-
Std Mix Actual Mix
of AHW
SR
)× ( TSH-TAHW ) × TSC
TSH
RSQ AQ RSH AHW
 CA Rahul Panchal 2.

3.VARIABLE OH VARIANCES 4.FIXED OH VARIANCES

(Power)
Table Table
+F Standard Comparable Standard Actual + F Cost 1. Particulars Budget Actual Recovery Rate
- A Output Actual Output Actual Output - A Expenditure 2. Overhead (RR)
Hours Rate Cost SH SR SC AHW AR AC Volume 3. Units 1 Unit = Rs. OH/ Units
Calender
+ A Capacity
4.
5.
Days
Hours Paid
5. ( ?
) 1 Day = Rs. OH/Days
1 Hour = Rs. OH/Hours Paid
- F Idle time 6. Idle Hours
Diagram COST
(SC-AC)
Efficiency 7. Hours worked
Units 7. ( ? ) 1 Unit = Rs. OH/Units

EXPENDITURE / BUDGET EFFICIENCY

(SR-AR)×AHW ( SH-AHW )×SR Diagram
1. COST
ABBREVIATIONS

al Recovery Rate per unit ×

h
SQ : Standard Quantity AQ : Actual Quantity × Actual units ×
SP : Standard Price AP : Actual Price
nc Recovered OH ×

a
SH : Standard Hours AH : Actual Hours Actual OH ×
SR : Standard Rate AR : Actual Rate
l P ×
SC : Standard Cost
TSQ : Total Standard Quantity
AC : Actual Cost

hu
Ra
TAQ : Total Actual Quantity
TSH : Total Standard Hours TAHW : Total Actual Hours Worked 2. EXPENDITURE / BUDGET 3. VOLUME

( - ) ( - )×
CA
TSC : Total Standard Cost TAC : Total Actual Cost Budgeted Actual Budgeted Actual RR
RSQ : Revised Standard Quantity AHP : Actual Hours Paid OH OH Units Units P.U.
RSH : Revised Standard Hours AHW : Actual Hours Worked

4. CALENDER 5. CAPACITY 6. IDLE TIME 7. EFFICIENCY

( Budgeted
Days
- Actual
Days )× RR
Per Day
Budgeted
Capacity
Actual
Capacity ×
RR
Per ( Idle
Hours
×
RR
Per Hour ) Budgeted
Units
Actual
Units
×
RR
Per
in Actual Hour (Always Adverse) in Actual Unit
Days Hours Worked

Budget Actual Budget Actual

Days Hours Worked
Hours Paid ? Units ?