Formulas-Standard Costing

June 17th, 2007 Comments off
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FORMULAS USED IN STANDARD COSTING

Material cost variance

Standard material cost less actual material cost

Material price variance

(standard price less actual price) x actual quantity purchased or used

Material usage variance

(standard quantity for actual output less actual quantity) x standard price

Material mix variance

(actual mix less standard mix ) x standard price

Material yield variance

(standard yield less actual yield) x standard cost

Labor cost variance

Standard wage cost less actual wage cost

Labor rate variance

(standard rate less actual rate ) x actual hours

Labor efficiency variance

(standard hours for actual output less actual hours worked) x standard rate

Idle time variance

Idle time x standard rate

Variable production cost variance

Standard variable overhead less actual variable overhead

Variable overhead expenditure variance

(standard overhead rate less actual overhead rate) x actual hours

Fixed overhead cost variance

Overhead absorbed less overhead incurred

Fixed overhead expenditure variance

(budgeted fixed overhead less actual fixed overhead)

Fixed overhead volume variance

(budgeted volume-actual volume) x standard absorption rate

Fixed overhead capacity variance

(budgeted hours-actual hours) x standard absorption rate

Fixed overhead productivity variance

(standard hours for actual output-actual hours worked) x standard absorption rate

Sales value variance

(budgeted quantity x standard selling price) less (actual quantity x actual selling price)

Sales price variance

(standard selling price-actual selling price) x actual quantity sold

Sales volume variance

(budgeted quantity-actual quantity) x standard selling price or standard profit or standard contribution

Sales margin variance

(budgeted quantity x standard profit)- (actual quantity x actual profit)

Sales contribution variance

(budgeted quantity x standard contribution)-(actual quantity x actual contribution)

Sales allowance variance

(budgeted allowance-actual allowance) x actual quantity sold

Sales mix variance

(standard mix-actual mix) x standard selling price or standard profit or standard contribution

Sales quantity variance

(budgeted quantity-actual quantity in standard mix) x standard price or standard profit or standard contribution

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Financial Accounting

 
 

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