Variance Analysis Formula Sheet

Accounting Formula Sheet

Total Material Cost Variance

(Standard Quantity for Production × Standard Price) − (Actual Quantity used × Actual Price)

Material Price Variance

(Standard Price − Actual Price for Unit) × Actual Quantity used

Material Usage Variance

(Standard Quantity for Production − Actual Quantity used) × Standard Price

Total Labour Cost Variance

(Standard Rate × Standard Hours for Production) − (Actual Rate × Actual Hours worked)

Labour Rate Variance

(Standard Rate − Actual Rate) × Actual Hours worked

Labour Efficiency Variance

(Standard Hours for Production − Actual Hours worked) × Standard Rate

Variable Overhead Cost Variance

(Standard Hours for Production × Variable Overhead Absorption Rate) − Actual Variable Overhead Cost

Variable Overhead Expenditure Variance

(Actual Hours Worked × Variable Overhead Absorption Rate) − Actual Variable Overhead Cost

Variable Overhead Efficiency Variance

(Standard Hours for Production − Actual Hours worked) × Variable Overhead Absorption Rate

Fixed Overhead Cost Variance

(Standard Hours for Production × Fixed Overhead Absorption Rate) − Actual Fixed Overhead Cost

Fixed Overhead Expenditure Variance

Budgeted Fixed Overheads − Actual Fixed Overhead Cost

Fixed Overhead Volume Variance

1. Budgeted Fixed Overheads − (Standard Hours for Actual Production × Fixed Overhead Absorption Rate)
2. (Actual Activity – Normal Activity) x Fixed Overhead Absorption Rate

Total Sales Revenue Variance

(Actual Selling Price × Actual Quantity) − (Budgeted Selling Price × Budgeted Quantity)

Sales Price Variance

(Actual Selling Price − Budgeted Selling Price) × Actual Quantity

Sales Volume Variance

(Actual Quantity − Budgeted Quantity) × Budgeted Selling Price