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# formula_sheet - Mix Variance =(AQ a – M a)SP a Yield...

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AFM 102 Mid-Term 2 Formula Sheet Chapter 10 Materials Price Variance = AQ(AP – SP) Materials Quantity Variance = SP(AQ – SQ) AQ = actual quantity purchased (or used if purchases = used); AP = actual price; SQ = standard quantity; SP = standard price Labour rate variance = AH(AR – SR) Labour efficiency variance = SR(AH – SH) Variable overhead spending variance = AH(AR – SR) Variable overhead efficiency variance = SR(AH – SH) AH = actual hours; AR = actual rate; SR = standard rate; SH = standard hours
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Unformatted text preview: Mix Variance = (AQ a – M a )SP a Yield Variance = (M a – SQ a )SP a AQ a = actual quantity used for input A; M A = actual total input quantity x budgeted mix a SQ A = standard quantity of input A for output achieved; SP a = standard price of input A z-score for statistical approach to variance investigation: z = (x – u) / standard deviation where: x = actual observation in current period; u = average observations over a period of time...
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