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

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online