VARIANCE ANALYSIS

Basic Variances Formula

Sales price (actual sales price ~ standard sales price) actual volume
Sales margin (actual margin ~ standard margin) actual volume
Sales volume (actual volume ~ budgeted volume) standard margin
Sales mix margin (actual sales volume ~ standard mix of actual total sales
volume) standard margin
Direct material price (actual price ~ standard price) actual quantity
Direct material usage (actual quantity ~ standard quantity of actual production)
standard price
Direct material mix (actual mix of actual total material input ~ standard mix of
actual total material input) standard price
Direct material yield (actual yield ~ standard yield of actual total material input)
standard material cost
Direct labour rate (actual rate ~ standard rate) actual hours
Direct labour efficiency (actual hours ~ standard hours of actual production)
standard rate
Direct labour mix (actual mix of actual total hours ~ standard mix of actual
total hours) standard rate
Direct labour yield (actual yield ~ standard yield of actual total labour hours)
standard labour cost
Direct labour idle time (idle hours x standard rate)
Fixed overhead volume ( actual volume ~ budgeted volume) fixed overhead
absorption rate
Fixed overhead (budgeted fixed overhead cost ~ actual fixed overhead cost)
expenditure
Variable overhead (actual hours ~ standard hours) variable overhead
efficiency absorption rate
Variable overhead actual variable overhead cost ~ (actual hours x variable
expenditure overhead absorption rate)

Planning Variances Formula

Material price (original standard price ~ revised standard price) revised
standard quantity
Material usage (original standard quantity ~ revised standard quantity)
original standard price
Labour rate (original standard rate ~ revised standard rate) revised
standard hour
Labour efficiency (original standard hour ~ revised standard hour) original
standard rate

Operating Variances Formula

Material price (actual price ~ revised standard price) actual quantity
Material usage (actual quantity ~ revised standard quantity) revised
standard price
Labour rate (actual rate ~ revised standard rate) actual hour
Labour efficiency (actual hour ~ revised standard hour) revised standard rate