Chapter 8 Formulas & Exhibit

Chapter 8 Formulas & Exhibit - AH Actual Labor...

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Exhibit 8-3 Standard Cost Formulas Materials – Materials Price Variance = (AQ x AP) – (AQ x SP) Material Quantity Variance = (AQ x SP) – (SQ x SP) Where AQ Actual Quantity of Inputs Purchased AP Actual Price of Inputs Purchased SP Standard Price of Inputs SQ Standard Quantity of Inputs allowed for Actual Output Labor – Labor Rate Variance = (AH x AR) – (AH x SR) Labor Efficiency Variance = (AH x SR) – (SH x SR) Where
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Unformatted text preview: AH Actual Labor Hours – AR Actual Labor Wage Rate – SR Standard Labor Wage Rate – SH Standard Labor Hours Allowed for Actual Output Variable Overhead – Variable OH Spending Variance = (AH x AR) – (AH x SR) Variable OH Efficiency Variance = (AH x SR) – (SH x SR) Where – AH Actual Hours (usually labor hours) – AR Actual Variable Mfg OH Rate – SR Standard Variable Mfg OH Rate – SH Standard Hours Allowed for the Actual Output...
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Chapter 8 Formulas & Exhibit - AH Actual Labor...

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