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Cost Variance Analysis Equations

Cost Variance Analysis Equations - Budgeted Fixed Overhead...

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MGMT 201 Cost Variance Analysis Equations Direct Material Price Variance = Purchase Quantity * (Actual Price – Standard Price) Direct Material Quantity Variance = Standard Price * (Actual Quantity – Standard Quantity) Direct Labor Rate Variance = Actual Hours Used * (Actual Rate per Hour – Standard Rate per Hour) Direct Labor Efficiency Variance = Standard Rate per Hour * (Actual Hours Used – Standard Hours Used) Total Budgeted Mo. Overhead Cost = (Budgeted Variable Overhead Costs per Activity Unit * Total Activity Units)
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Unformatted text preview: + Budgeted Fixed Overhead Costs per Mo. Variable Overhead Spending Variance = Actual Hours Used * (Actual VOH Rate – Standard VOH Rate) Where VOH is Variable Overhead Variable Overhead Efficiency Variance = Standard Variable Overhead Rate * (Actual Hours Used – Standard Hours Used) Fixed Overhead Budget Variance = Actual FOH – Budgeted FOH Where FOH is Fixed Overhead Fixed Overhead Volume Variance = Budgeted FOH – Applied FOH Where FOH is Fixed Overhead...
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  • Fall '08
  • Direct material price variance, Overhead Budget Variance, overhead volume variance, overhead efficiency variance, overhead spending variance

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