Variance Analysis Tcm4-118188

8/12/2019 Variance Analysis Tcm4-118188

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NATIONAL QUALIFICATIONS CURRICULUM SUPPORT

Accounting andFinance

Variance Analysis

[AVANC! "I#"!R$


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Acknowledgements

T%is docu&ent is 'roduced (y Learning and Teac%ing Scotland as 'art o) t%e National

Quali)ications su''ort 'rogra&&e )or Accounting and Finance*

First 'u(lis%ed +,,-

!lectronic .ersion +,,-

/ Learning and Teac%ing Scotland +,,-

T%is 'u(lication &ay (e re'roduced in 0%ole or in 'art )or educational 'ur'oses (y

educational esta(lis%&ents in Scotland 'ro.ided t%at no 'ro)it accrues at any stage*


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CONTENTS

Section 1: Standard costing 1

Reasons )or standard costing and .ariance analysis

Ty'es o) standard 2e3'ected4 current4 (asic4 ideal5

Pro(le&s o) setting u' a standard cost syste&

Ad.antages o) setting u' standard cost syste&

Section 2: Cost variances 6

Materials 7 cost4 'rice4 usage

La(our 7 cost4 rate4 e))iciencyVaria(le o.er%eads 7 cost4 e3'enditure4 e))iciency

Reasons )or .ariances

Section 3: Standard costs and budgeted costs 11

Varia(le o.er%eads 7 cost4 e3'enditure4 e))iciency

Fi3ed o.er%eads 7 cost4 e3'enditure4 e))iciency4 .olu&e4

ca'acity


Section 4: Revenue variances 18

Sales 7 re.enue4 'rice4 .olu&e


Section 5: Formulae +1

T%e use o) )or&ulae )or calculating .ariances

Section 6: !ercises +9

Section ": Solutions -9

A CC OU NT IN # AN FI NA NC ! 7 VA RI AN C! A NA L: SIS 2 A" 5 ###

/ Learning and Teac%ing Scot land +,,-


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S%A&'AR' C(S%#&)

SECTION 1

Reasons *or standard costing and variance anal+sis

"istoric costing is used in )inancial accounting and state&ents tend to (e

'resented at t%e end o) t%e year4 t%ere)ore

correcti.e action is i&'ossi(le

t%ere is no yardstic; (y 0%ic% 'er)or&ance can (e co&'ared*

T%is s%ortco&ing o) )inancial accounting %as led to t%e use o) standard

costing and .ariance analysis*

Standard costing and .ariance analysis &a;e u' a 'redeter&ined costing

syste& 0%ere

actual 'er)or&ance is co&'ared 0it% a 'redeter&ined 'er)or&ance so t%at

i) di))erences occur &anage&ent can ta;e action%en using t%e diagra& it is i&'ortant to ignore or 7 in t%e calculation*

T%e 'riceBrateBe3'enditure .ariance and t%e usageBe))iciency .ariance 0%en

added toget%er e=ual t%e total cost .ariance*

T%e total cost variance)or &aterials4 la(our and .aria(le o.er%eads (rea;s

do0n into t0o 'arts*

%otal Cost $ariance Material Cost Variance

La(our Cost Variance

Varia(le O.er%ead Cost Variance

-rice $ariance Price )or Materials

La(our Rate )or La(our

!3'enditure )or Varia(le O.er%eads

0sage $ariance Usage )or Materials

!))iciency )or La(our

!))iciency )or Varia(le O.er%eads

T%e diagra& is constructed using (o3es* T%ese (o3es can (e used to

calculate all t%e .ariances )or &aterials4 la(our and .aria(le o.er%eads* T%e

a((re.iations used in t%e diagra& are as )ollo0s*

A CC OU NT IN # AN FI NA NC ! 7 VA RI AN C! A NA L: SI S 2A "5 5



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C(S% $AR#A&CS

AC Actual Cost SC Standard Cost

AP Actual Price SP Standard Price

AR Actual Rate SR Standard RateAQ Actual Quantity SQ Standard Quantity

A" Actual "ours S" Standard "ours

T%e )ollo0ing diagra& s%o0s all t%e .ariances*

Reasons *or variances

Variances arise )or &any reasons and can (e )a.oura(le 2s%o0ing t%at actual

'er)or&ance 0as (etter t%an 0as (udgeted5 or ad.erse 2s%o0ing t%at actual

'er)or&ance 0as 0orse t%an 0as (udgeted5* >%en .ariances are )a.oura(le4

&anage&ent is o'erating e))iciently< 0%en ad.erse4 &anage&ent &ust

in.estigate to )ind out 0%y 'er)or&ance is (elo0 t%at e3'ected*

aterials

-rice variancesare caused (y

c%ange in 'rice o) &aterials

c%ange in deli.ery costs and dates

'oor =uality &aterial (eing 'urc%ased

loss o) discount*

6 ACCOUNTIN# AN FINANC! 7 VARIANC! ANAL:SIS 2A"5


-rice $arianceabour Rate $ariance

!,enditure $ariance

AS- A-

0sage $ariance

**icienc+ $ariance

S-S A

Standard Cost

S- S

A-7AR

S-7SR

S7S8 A7A8

Actual Cost A- A


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C(S% $AR#A&CS

0sage variancesare caused (y

carelessnessB(ad %andling in use e3cessi.e scra' or 0aste

'il)erageBusing nonDstandard &ater ials

incorrect (oo;D;ee'ing*

abour

abour rate variancesare caused (y

c%ange in (asic 0age rates

'oor grade o) e&'loyee used on t%e Eo(

e3cessi.e use o) o.erti&e*

**icienc+ variancesare caused (y

inco&'etent o'erati.esB'oor training

'oor su'er.isionBine))icient organisation

'oor 0or;ing conditions

delays due to &ac%ine (rea;do0nBlate deli.eries

stri;esBgoDslo0s*

$ariable over/eads

!,enditure variancesare caused (y

c%ange in rent and rates

increases in ad&inistrati.e e3'enses

c%ange in )inancial e3'enses 7 interest rates

c%anges in t%e ca'ital (ase o) t%e )ir&*

**icienc+ variancesare caused (y

use o) %eat and lig%t

a''ro'riate use o) s'ace

.olu&e o) 'roduction4 sto''ages4 stri;es*

A CC OU NT IN # AN FI NA NC ! 7 VA RI AN C! A NA L: SI S 2A "5 "



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C(S% $AR#A&CS

!am,le 1

Fro& t%e )ollo0ing in)or&ation calculate t%e .ariances*

aterials

Standard Price 'er &etre G Actual Price 'er &etre -

Standard Usage 2Quantity5 'er unit Actual Usage 2Quantity5 'er unit

6 &etres 9 &etres

Material Cost Variance 2SC 7 AC5 +, 7 +1 12a5

Material Price Variance AQ2SP 7 AP5 9 1 92)5

Material Usage Variance SP2SQ 7 AQ5 G + H2a5

T%e .alues gi.en in t%e =uestion can (e 'laced on t%e diagra& and t%e

.ariances calculated*



-rice $ariance

AS- A- 1 " "*

0sage $ariance

S-S A

2 4 ; 9a

Standard Cost

4 5 ; 2age Rate Variance -, 2A5< !))iciency Variance +, 2A5

Standard Cost G,, 7 -, 7 +, -6,

$ariable (ver/eads

Actual Cost +,,< S'ending Variance 1, 2A5< !))iciency Variance G, 2F5Standard Cost +,, 7 1, G, +-,

-* aterials

Actual Cost 8,,< Price Variance 1, 2F5< Usage Variance +, 2F5

Standard Cost 8,, 1, +, 8-,

abour

Actual Cost +,,< >age Rate Variance +, 2A5< !))iciency Variance +, 2A5

Standard Cost +,, 7 +, 7 +, 1K,

$ariable (ver/eads

Actual Cost 1,,< S'ending Variance 1, 2A5< !))iciency Variance +, 2F5

Standard Cost 1,, 7 1, +, 11,

G* aterials

Actual Cost -,,< Price Variance +, 2A5< Usage Variance -, 2F5

Standard Cost -,, 7 +, -, -1,

A CC OU NT IN # AN F IN AN C! 7 V AR IA NC ! AN AL :S IS 2 A" 5 43



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abour

Actual Cost K,,< >age Rate Variance 1, 2A5< !))iciency Variance +, 2A5

Standard Cost K,, 7 1, 7 +, 69,

$ariable (ver/eads

Actual Cost 1,,< S'ending Variance -, 2A5< !))iciency Variance G, 2F5

Standard Cost 1,, 7 -, G, 11,




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Answer 4

1* aterialsAC 1H4,,,

SC ,*6, G 1,4,,, +,4,,,

Total Material Cost Variance 2SC 7 AC5 +,4,,, 7 1H4,,, +4,,, 2F5

Material Price Variance 2SP 7 AP5AQ 2SP AQ5 7 2AP AQ5

2,*6 1K4,,,5 7 1H4,,,

H4,,, 7 1H4,,, 1,4,,, 2A5

Material Usage Variance 2SQ 7 AQ5SP 2SQ SP5 7 2AQ SP5

+,4,,, 7 21K4,,, ,*65

+,4,,, 7 H4,,, 1+4,,, 2F5

abour

AC G,4,,,

SC 1*G, - 1,4,,, G+4,,,

Total La(our Cost Variance 2SC 7 AC5 G+4,,, 7 G,4,,, +4,,, 2F5

La(our Rate Variance 2SR 7 AR5A" 2SR A"5 7 2AR A"5

21*G +94,,,5 7 G,4,,,

-94H,, 7 G,4,,, +4+,, 2A5

La(our !))iciency Variance 2S" 7 A"5SR 2S" SP5 7 2A" SR5

G+4,,, 7 2+94,,, 1*G,5

G+4,,, 7 -94H,, G4+,, 2F5

+* aterials

AC +,4,,,

SC G + G4,,, -+4,,,

Total Material Cost Variance 2SC 7 AC5 -+4,,, 7 +,4,,, 1+4,,, 2F5


2G 1,4,,,5 7 +,4,,,

G,4,,, 7 +,4,,, +,4,,, 2F5


-+4,,, 7 21,4,,, G5

-+4,,, 7 G,4,,, H4,,, 2A5

abour

AC -H4,,,

SC 1*,, K G4,,, +G4,,,

Total La(our Cost Variance 2SC 7 AC5 +G4,,, 7 -H4,,, 1G4,,, 2A5


21 G,4,,,5 7 -H4,,,

G,4,,, 7 -H4,,, +4,,, 2F5


+G4,,, 7 2G,4,,, 15




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+G4,,, 7 G,4,,, 1K4,,, 2A5




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-* aterials

AC 1+4,,,

SC +*6, + +4,,, 1,4,,,Total Material Cost Variance 2SC 7 AC5 1,4,,, 7 1+4,,, +4,,, 2A5


2+*6, K4,,,5 7 1+4,,,

164,,, 7 1+4,,, -4,,, 2F5


1,4,,, 7 2K4,,, +*6,5

1,4,,, 7 164,,, 64,,, 2A5

abour

AC G4,,,

SC 1 1 +4,,, +4,,,

Total La(our Cost Variance 2SC 7 AC5 +4,,, 7 G4,,, +4,,, 2A5


21 64,,,5 7 G4,,,

64,,, 7 G4,,, 14,,, 2F5


+4,,, 7 264,,, 15

+4,,, 7 64,,, -4,,, 2A5

G* aterial

AC 14,,,SC 1 1 14,,, 14,,,

Total Material Cost Variance 2SC 7 AC5 14,,, 7 14,,, ,


1 14,,,5 7 14,,, 14,,, 7 14,,, ,


14,,, 7 214,,, 15 14,,, 7 14,,, ,

abour

AC G4,,,

SC +

+

14,,, G4,,,Total La(our Cost Variance 2SC 7 AC5 G4,,, 7 G4,,, ,


2+ +4,,,5 7 G4,,, G4,,, 7 G4,,, ,


G4,,, 7 2+4,,, +5 G4,,, 7 G4,,, ,

A CC OU NT IN # AN F IN AN C! 7 V AR IA NC ! AN AL :S IS 2 A" 5 4"



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6* aterial

AC 14,,,

SC ,*H, - 6,, 14+,,Total Material Cost Variance 2SC 7 AC5 14+,, 7 14,,, +,, 2F5


2,*H 14G,,5 7 14,,,

141+, 7 14,,, 1+, 2F5


14+,, 7 214G,, ,*H5

14+,, 7 141+, H, 2F5

abour

AC G,,

SC ,*6, 1 6,, +6,

Total La(our Cost Variance 2SC 7 AC5 +6, 7 G,, 16, 2A5


2,*6 -6,5 7 G,, 196 7 G,, ++6 2A5


+6, 7 2-6, ,*65 +6, 7 196 96 2F5

$ariable (ver/eads

AC 146,,

SC 1 + 6,, 14,,,

Varia(le O.er%ead Cost Variance 2SC 7 AC5 14,,, 7 146,, 6,, 2A5Varia(le O.er%ead !3'enditure

Variance 2SR 7 AR5A" 2SR A"5 7 2AR A"5

21 H,,5 7 146,, H,, 7 146,,

9,, 2A5

Varia(le O.er%ead !))iciency

Variance 2S" 7 A"5SR 2S" SP5 7 2A" SR5

14,,, 7 2H,, 15 14,,, 7 H,,

+,, 2F5

K* aterialAC 1G4,,,

SC ,*96 H +4,,, 1+4,,,

Total Material Cost Variance 2SC 7 AC5 1+4,,, 7 1G4,,, +4,,, 2A5


2,*96 164,,,5 7 1G4,,,

114+6, 7 1G4,,, +496, 2A5


1+4,,, 7 2164,,, ,*965

1+4,,, 7 114+6, 96, 2F5




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abour

AC +,4,,,

SC ,*-, +, +4,,, 1+4,,,Total La(our Cost Variance 2SC 7 AC5 1+4,,, 7 +,4,,, H4,,, 2A5


2,*- 194,,,5 7 +,4,,,

641,, 7 +,4,,, 1G48,, 2A5


1+4,,, 7 2194,,, ,*-5

1+4,,, 7 641,, K48,, 2F5

$ariable (ver/eads

AC -4,,,

SC ,*9, 1 +4,,, 14G,,

Varia(le O.er%ead Cost Variance 2SC 7 AC5 14G,, 7 -4,,, 14K,, 2A5

Varia(le O.er%ead !3'enditure

Variance 2SR 7 AR5A" 2SR A"5 7 2AR A"5

2,*9 64,,,5 7 -4,,,

-46,, 7 -4,,, 6,, 2F5


Variance 2S" 7 A"5SR 2S" SP5 7 2A" SR5

14G,, 7 264,,, ,*95

14G,, 7 -46,, +41,, 2A5

A CC OU NT IN # AN F IN AN C! 7 V AR IA NC ! AN AL :S IS 2 A" 5 4=



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Answer 5

1* aterialsActual Cost G,,< Price Variance K, 2A5< Usage Variance 6 2F5

Standard Cost G,, 7 K, 6 -G6

abour

Actual Cost 1,,< >age Rate Variance H, 2A5< !))iciency Variance +, 2A5

Standard Cost 1,, 7 H 7 +, 9+

$ariable (ver/eads

Actual Cost 1,,< S'ending Variance ,< !))iciency Variance K, 2F5

Standard Cost 1,, K, 1K,

+* aterials

Actual Cost 9,,< Price Variance K, 2F5< Usage Variance -, 2A5

Standard Cost 9,, K, 7 -, 9-,

abour

Actual Cost 14,,,< >age Rate Variance 6 2A5< !))iciency Variance 1, 2A5

Standard Cost 14,,, 7 6 7 1, 8H6

$ariable (ver/eads

Actual Cost -,,< S'ending Variance K 2A5< !))iciency Variance G 2A5Standard Cost -,, 7 K 7 G +8,

-* aterials

Actual Cost G,,< Price Variance ++ 2A5< Usage Variance G*6 2F5

Standard Cost G,, 7 ++ G*6 -H+*6

abour

Actual Cost K4,,,< >age Rate Variance -9 2A5< !))iciency Variance - 2F5

Standard Cost K4,,, 7 -9 - 648KK

$ariable (ver/eads

Actual Cost -6,< S'ending Variance KG 2A5< !))iciency Variance ,

Standard Cost -6, 7 KG +HK

G* aterials

Actual Cost H4,,,< Price Variance 66 2F5< Usage Variance G*+ 2A5

Standard Cost H4,,, 66 7 G*+ H4,6,*H

5< ACCOUNTIN# AN FINANC! 7 VARIANC! ANAL:SIS 2A"5



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abour

Actual Cost -,,< >age Rate Variance G, 2F5< !))iciency Variance 9*6 2A5

Standard Cost -,, G, 7 9*6 --+*6

$ariable (ver/eads

Actual Cost 14+,,< S'ending Variance +- 2F5< !))iciency Variance ,

Standard Cost 14+,, +- 14++-

6* aterials

Actual Cost -4,,,< Price Variance -, 2F5< Usage Variance -H 2F5

Standard Cost -4,,, -, -H -4,KH

abour

Actual Cost 146,,< >age Rate Variance G, 2F5< !))iciency Variance ,

Standard Cost 146,, G, 146G,

$ariable (ver/eads

Actual Cost -46,,< S'ending Variance G, 2F5< !))iciency Variance ,

Standard Cost -46,, G, -46G,




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Answer 6

2a5 aterialAC +4H,, +*6 94,,,

SC + - 146,, 84,,,

Total Material Cost Variance 2SC 7 AC5 84,,, 7 94,,, +4,,, 2F5

Material Price Variance 2SP 7 AP5AQ 2- 7 +*65+4H,,

,*6 +4H,, 14G,, 2F5

Material Usage Variance 2SQ 7 AQ5SP [2+ 146,,5 7 +4H,,$-

+,, - K,, 2F5

abour

AC G4,,, 11 GG4,,,

SC - 1, 146,, G64,,,

Total La(our Cost Variance 2SC 7 AC5 G64,,, 7 GG4,,, 14,,, 2F5

La(our Rate Variance 2SR 7 AR5A" 21, 7 115G4,,,

1 G4,,, G4,,, 2A5

La(our !))iciency Variance 2S" 7 A"5SR [2- 146,,5 7 G4,,,$1,

6,, 1, 64,,, 2F5

2(5 aterials

AC 1864,,, ,*K, 1194,,,

SC 1, ,*6 1,4,,, 6,4,,,

Total Material Cost Variance 2SC 7 AC5 6,4,,, 7 1194,,, K94,,, 2A5

Material Price Variance 2SP 7 AP5AQ 2,*6 7 ,*K51864,,,

,*1 1864,,, 1846,, 2A5

Material Usage Variance 2SQ 7 AQ5SP

[21, 1,4,,,5 7 1864,,,$,*6

864,,, ,*6 G946,, 2A5

abour

AC G,46,, 1*K KG4H,,

SC G 1*H 1,4,,, 9+4,,,

Total La(our Cost Variance 2SC 7 AC5 9+4,,, 7 KG4H,, 94+,, 2F5La(our Rate Variance 2SR 7 AR5A" 21*H, 7 1*K,5 G,46,,

,*+, G,46,, H41,, 2F5

La(our !))iciency Variance 2S" 7 A"5SR

[2G 1,4,,,5 7 G,46,,$1*H,

6,, 1*H, 8,, 2A5




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2c5 aterials

AC 1641,, +*8, G-498,

SC 6 - -4,,, G64,,,Total Material Cost Variance 2SC 7 AC5 G64,,, 7 G-498, 14+1, 2F5

Material Price Variance 2SP 7 AP5AQ 2- 7 +*8,51641,,

,*1, 1641,, 1461, 2F5

Material Usage Variance 2SQ 7 AQ5SP [26 -4,,,5 7 1641,,$-

1,, - -,, 2A5

abour

AC 14G6, 8 1-4,6,

SC 1 1, -4,,, -,4,,,

Total La(our Cost Variance 2SC 7 AC5 -,4,,, 7 1-4,6, 1K486, 2F5

La(our Rate Variance 2SR 7 AR5A" 21, 7 8514G6,

1 14G6, 14G6, 2F5

La(our !))iciency Variance 2S" 7 A"5SR [21 -4,,,5 7 14G6,$1,

1466, 1, 1646,, 2F5

2d5 aterials

AC G846,, ,*9, -G4K6,

SC 1, ,*6 64,,, +64,,,

Total Material Cost Variance 2SC 7 AC5 +64,,, 7 -G4K6, 84K6, 2A5

Material Price Variance 2SP 7 AP5AQ 2,*6, 7 ,*9,5G846,,

,*+, G846,, 848,, 2A5Material Usage Variance 2SQ 7 AQ5SP

[21, 64,,,5 7 G846,,$,*6,

6,, ,*6, +6, 2F5

abour

AC +64+,, 1*1, +949+,

SC 6 ,*H 64,,, +,4,,,

Total La(our Cost Variance 2SC 7 AC5 +,4,,, 7 +949+, 949+, 2A5

La(our Rate Variance 2SR 7 AR5A" 2,*H 7 1*15+64+,,

,*-,

+64+,, 946K, 2A5La(our !))iciency Variance 2S" 7 A"5SR

[26 64,,,5 7 +64+,,$,*H,

+,, ,*H, 1K, 2A5




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Answer "

2a5 aterialsAC G4K,, 1*K, 94-K,

SC + +*, +4,,, H4,,,

Total Material Cost Variance 2SC 7 AC5 H4,,, 7 94-K, KG, 2F5

Material Price Variance 2SP 7 AP5AQ 2+ 7 1*K,5G4K,,

,*G, G4K,, 14HG, 2F5

Material Usage Variance 2SQ 7 AQ5SP [2+ +4,,,5 7 G4K,,$+

K,, + 14+,, 2A5

abour

AC 64,,, 1+*,, K,4,,,

SC + 1+*6, +4,,, 6,4,,,

Total La(our Cost Variance 2SC 7 AC5 6,4,,, 7 K,4,,, 1,4,,, 2A5

La(our Rate Variance 2SR 7 AR5A" 21+*6, 7 1+564,,,

*6 64,,, +46,, 2F5

La(our !))iciency Variance 2S" 7 A"5SR [2+ +4,,,5 7 64,,,$1+*6

14,,, 1+*6 1+46,, 2A5

$ariable (ver/eads

AC H4,,,

SC + + +4,,, H4,,,

Total O.er%ead Cost Variance SC 7 AC H4,,, 7 H4,,, , 2A5Varia(le O.er%ead !3'enditure

Variance 2VOAR A"5 7 AC

2+ 64,,,5 7 H4,,, +4,,, 2F5


Variance VOARB2S"7A"5

+2G4,,, 7 64,,,5 +4,,, 2A5

Fi!ed (ver/eads

AC +,4,,,

SC + - +4,,, 1+4,,,

J" + 14H,, -4K,, %rs

S" + +4,,, G4,,, %rs

A" 64,,, %rs

Fi3ed O.er%ead Cost Variance SC 7 AC 1+4,,, 7 +,4,,, H4,,, 2A5

Fi3ed O.er%ead !3'enditure

Variance 2FOAR J"5 7 AC

2- -4K,,5 7 +,4,,, 84+,, 2A5

Fi3ed O.er%ead Volu&e Variance SC 7 2FOAR J"5

1+4,,, 7 2- -4K,,5 14+,, 2F5




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Fi3ed O.er%ead !))iciency

Variance FOARB2S" 7 A"5

-2G4,,, 7 64,,,5 -4,,, 2A5Fi3ed O.er%ead Ca'acity

Variance FOARB2A" 7 J"5

-264,,, 7 -4K,,5 G4+,, 2A5

2(5 aterials

AC 164,,, -*1, GK46,,

SC - -*, 64+,, GK4H,,

Total Material Cost Variance 2SC 7 AC5 GK4H,, 7 GK46,, -,, 2F5

Material Price Variance 2SP 7 AP5AQ 2- 7 -*1,5164,,,

,*1, 164,,, 146,, 2A5

Material Usage Variance 2SQ 7 AQ5SP [2- 64+,,5 7 164,,,$-

K,, - 14H,, 2F5

abour

AC +,4,,, 9 1G,4,,,

SC + K 64+,, K+4G,,

T ot al La (o ur Co st Va ri an ce 2S C 7 AC 5 K +4 G, , 7 1 G, 4, ,,

994K,, 2A5

La(our Rate Variance 2SR 7 AR5A" 2K 7 95+,4,,,

+,4,,, 1 +,4,,, 2A5

L a( ou r !) )i ci en cy Va ri an ce 2 S" 7 A" 5S R 2 1, 4G ,, 7 +, 4, ,, 5 K 694K,, 2A5

$ariable (ver/eads

AC 64,,,

SC + 1 64+,, 1,4G,,

Total O.er%ead Cost Variance 2SC 7 AC5 1,4G,, 7 64,,,

64G,, 2F5


Variance 2VOAR A"5 7 AC

21 +,4,,,5 7 64,,,

164,,, 2F5Varia(le O.er%ead !))iciency

Variance 2S" 7 A"5VOAR

21,4G,, 7 +,4,,,51

84K,, 2A5

Fi!ed (ver/eads

AC -,4,,,

SC + + 64+,, +,4H,,

J" + G46,, 84,,, %rs

S" + 64+,, 1,4G,, %rs

A" +,4,,, %rs




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Fi3ed O.er%ead Cost Variance SC 7 AC +,4H,, 7 -,4,,, 84+,, 2A5


Variance 2FOAR J"5 7 AC 2+ 84,,,5 7 -,4,,, 1+4,,, 2A5

Fi3ed O.er%ead Volu&e Variance SC 7 2FOAR J"5

+,4H,, 7 2+ 84,,,5 +4H,, 2F5


Variance FOARB2S" 7 A"5

+21,4G,, 7 +,4,,,5 184+,, 2A5

Fi3ed O.er%ead Ca'acity

Variance FOARB2A" 7 J"5

+2+,4,,, 7 84,,,5 ++4,,, 2A5




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Answer 9

2a5 $ariable (ver/eadsVOAR JOBJ" H4,,,B64,,, 1*K,

SC S" VOAR 64+,, 1*K, H4-+,

Total O.er%ead Cost Variance SC 7 AC H4-+, 7 94,,, 14-+, 2F5


Variance 2VOARBSR A"5 7 AC

21*K 64K,,5 7 94,,, 148K, 2F5


Variance VOARBSR2S"7A"5

1*K 264+,, 7 64K,,5 KG, 2A5

Fi!ed (ver/eads

FOAR JOBJ" 64,,,B64,,, 1

SC S" FOAR 64+,, 1 64+,,

Fi3ed O.er%ead Cost Variance SC 7 AC 64+,, 7 64K,, G,, 2A5


Variance 2FOARBSR J"5 7 AC

21 64,,,5 7 64K,, K,, 2A5

Fi3ed O.er%ead Volu&e Variance SC 7 2FOARBSR J"5

64+,, 7 21 64,,,5 +,, 2F5


Variance FOARBSR2S" 7 A"5 1264+,, 7 64K,,5 G,, 2A5


Variance FOARBSR2A" 7 J"5

1264K,, 7 64,,,5 K,, 2A5

2(5 $ariable (ver/eads

VOAR JOBJ" +,4,,,B64,,, G

SC S" VOAR G46,, G 1H4,,,

Total O.er%ead Cost Variance SC 7 AC 1H4,,, 7 ++4,,, G4,,, 2A5

Varia(le O.er%ead !3'enditureVariance 2VOARBSR A"5 7 AC

2G G4,,,5 7 ++4,,, K4,,, 2A5


Variance VOARBSR2S"7A"5

G2G46,, 7 G4,,,5 +4,,, 2F5

A CC OU NT IN # AN F IN AN C! 7 V AR IA NC ! AN AL :S IS 2 A" 5 5"



62/63

S(0%#(&S

Fi!ed (ver/eads

FOAR JOBJ" 1H4,,,B64,,, -*K,

SC S" FOAR G46,, -*K, 1K4+,,Fi3ed O.er%ead Cost Variance SC 7 AC 1K4+,, 7 1K4,,, +,, 2F5


Variance 2FOARBSR J"5 7 AC

2-*K, 64,,,5 7 1K4,,, +4,,, 2F5

Fi3ed O.er%ead Volu&e Variance SC 7 2FOARBSR J"5

1K4+,, 7 2-*K, 64,,,5 14H,, 2A5


Variance FOARBSR2S" 7 A"5

-*K,2G46,, 7 G4,,,5 14H,, 2F5


Variance FOARBSR2A" 7 J"5

-*K,2G4,,, 7 64,,,5 -4K,, 2F5




63/63

S(0%#(&S

Answer =

2a5 Judgeted Re.enue 1+ 64,,, K,4,,,Actual Re.enue 1- G46,, 6H46,,

Total Sales Re.enue Variance AR 7 JR 6H46,, 7 K,4,,, 146,, 2A5

Sales Price Variance 2AP 7 JP5AQ 21- 7 1+5 G46,, G46,, 2F5

Sales Volu&e Variance 2AQ 7 JQ5JP 2G46,, 7 64,,,5 1+ K4,,, 2A5

2(5 Judgeted Re.enue +, 1,4,,, +,,4,,,

Actual Re.enue 1H 84,,, 1K+4,,,

Total Sales Re.enue Variance AR 7 JR 1K+4,,, 7 +,,4,,, -H4,,, 2A5

Sales Price Variance 2AP 7 JP5AQ 21H 7 +,5 84,,, 1H4,,, 2A5

Sales Volu&e Variance 2AQ 7 JQ5JP 284,,, 7 1,4,,,5 +, +,4,,, 2A5

2c5 Judgeted Re.enue -, 1+46,, -964,,,

Actual Re.enue -6 164,,, 6+64,,,

Total Sales Re.enue Variance AR 7 JR 6+64,,, 7 -964,,, 16,4,,, 2F5

Sales Price Variance 2AP 7 JP5AQ 2-6 7 -,5 164,,, 964,,, 2F5

Sales Volu&e Variance 2AQ 7 JQ5JP 2164,,, 7 1+46,,5 -, 964,,, 2F5

2d5 Judgeted Re.enue K 14,,, K4,,,

Actual Re.enue 6 146,, 946,,

Total Sales Re.enue Variance AR 7 JR 946,, 7 K4,,, 146,, 2F5

Sales Price Variance 2AP 7 JP5AQ 26 7 K5 146,, 146,, 2A5

Sales Volu&e Variance 2AQ 7 JQ5JP 2146,, 7 14,,,5 K -4,,, 2F5

Documents

Variance Analysis Tcm4-118188