Ch 5 · Standard Costing & Variance Analysis

🧮 Formula sheet

1. 1.Material Price Var = (SP − AP) × AQ
2. 2.Material Usage Var = (SQ − AQ) × SP
3. 3.Labour Rate Var = (SR − AR) × AH paid
4. 4.Labour Efficiency Var = (SH − AH worked) × SR
5. 5.FOH Volume Var = Std Rate × (Actual Output − Budgeted Output) [in std hrs]
6. 6.Sales Value Var = (Actual Sales − Budgeted Sales)