DIRECT MATERIALS DIRECT MATERIALS

Point of Purchase Point of Purchase

AP x AQP SP x AQP AP x AQP SP x AQP

Material Purchase Price Variance Material Purchase Price Variance

SP x AQU SP x SQU SP x AQU SP x SQU

Material Quantity/Usage Variance Material Quantity/Usage Variance

Point of Usage Point of Usage

AP x AQU SP x AQU SP x SQU AP x AQU SP x AQU SP x SQU

Material Price Usage Variance Material Purchase Price Material Price Usage Variance Material Purchase Price
Variance Variance

Total Material Cost Variance Total Material Cost Variance

DIRECT LABOR DIRECT LABOR

AR x AH SR x AH SR x SH AR x AH SR x AH SR x SH

Labor Rate Variance Labor Efficiency Variance Labor Rate Variance Labor Efficiency Variance

OVERHEAD OVERHEAD
Actual FO Budgeted Based on AH Budgeted Based on SH Applied FO Actual FO Budgeted Based on AH Budgeted Based on SH Applied FO
Budgeted Fixed OH Budgeted Fixed OH FOR x SH Budgeted Fixed OH Budgeted Fixed OH FOR x SH

VOR x AH VOR x SH VOR x SH VOR x AH VOR x SH VOR x SH

Spending Variance Efficiency Variance Volume Variance Spending Variance Efficiency Variance Volume Variance

Controllable/Budget Variance Volume Variance Controllable/Budget Variance Volume Variance

Total Overhead Cost Variance Total Overhead Cost Variance

FOUR-VARIANCE APPROACH FOUR-VARIANCE APPROACH

Actual FO Budgeted Fixed OH FOR x SH Actual FO Budgeted Fixed OH FOR x SH

Fixed Spending Variance Fixed Volume Variance Fixed Spending Variance Fixed Volume Variance

Actual VO VOR x AH VOR x SH Actual VO VOR x AH VOR x SH

Variable Spending Variance Variable Efficiency Variance Variable Spending Variance Variable Efficiency Variance