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 volumeactual volume) x standard absorption rate 
Fixed overhead capacity variance 
(budgeted hoursactual hours) x standard absorption rate 
Fixed overhead productivity variance 
(standard hours for actual outputactual 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 priceactual selling price) x actual quantity sold 
Sales volume variance 
(budgeted quantityactual 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 allowanceactual allowance) x actual quantity sold 
Sales mix variance 
(standard mixactual mix) x standard selling price or standard profit or standard contribution 
Sales quantity variance 
(budgeted quantityactual quantity in standard mix) x standard price or standard profit or standard contribution 