Price Variance AQp AP-AQpxSP AQUXSP-SQS

Usage Variance
=
x =
O result : favorable

AQp (AP-SP) O result:favorable

>
-

=
x
=
SPX(AQu -

SQ) *
O result : unfavorable

or =

AQp /SP-AP) i G result :favorabletable

x
or =

SPX(SQ-AQutO result :favorableenable

# Variance Analysis for Direct Labor

Cost
Amal constant An Standard Cost
-
Attis
&
stand Hour ( In-Output ratio x actual output)
Acmal
Hour
=

SRSR X

isconstan
X
a
Labor Rate Actual Rate Standard Rate
lcost AR determine
cost only AH determine

Direct labor Rate variance Direct lab or

Efficiency variance
SR
= AHXAR-AHxSR = SHXSR-AH x

(SH-AH) fanfar
AHX (AR-SR) O:Far = SRx
SMX (AH-SH) Gifar
=
or
I
= -

AR)
-
fav unfav
(SR
:
or =
AH X -

>
- & :

-( : unfav

Left
Increasing Increasing
Left
unfavorable
Right favorable Right

* for the result : unfavorable =

- when the present only have the result
favorable = * with unfr or fu to tell if it's o O
or

#I Variance analysis for overhead (e based on DL hours)

.
.

:
g
standard
OVH cost (Budgeted)
overhead rate = fixed overhead rate per hour -
fixed overhead cost

activity volume - denominator volume (hours)

Triver
as

Cost

I
Actual Cost Budgeted Applied/Standard cost

I
fixe & OVH :
- Budgeted fixed ovh standard hours
* Actual fixed
W

Denominator hour

Standard fixed overhead

=

Overhead
Standard "Fixed overhead
rate per hour rate per hour