STANDARD COSTING

COST VARIANCE ANALYSIS

FORMULA’S
DIRECT MATERIALS

Actual Price X Actual Quantity

Standard Price X Actual Quantity

Standard Price X Standard Quantity

DIRECT LABOR
Actual Rate X Actual Hours

Standard Rate X Actual Hours

Standard Rate X Standard Hours

1 Way Overhead Analysis

OVER HEAD

The Difference between …

Actual and BAAH is called Spending Variance

BAAH and BASH is called Efficiency Variance

BASH and Standard is called Volume Variance

Variable spending, Fixed Spending, Efficiency Variance, and Volume Variance

Actual and BASH is called Controllable Variance

BASH and Standard is called Uncontrollable Variance

Actual and Standard is called Total Overhead Variance Analysis