Particulars Standard/ Budgeted

Standard Price Input Quantity Standard

Total Cost Per
Per Unit of per Unit of Quantity of
Unit of output
input output input Total

Sales 1500 5000

Material 100 10 50,000 1000

Labor 40 4 20000 160

Fixed Cost 200

Total Cost 1,360

Profit 140

a) Sales Variance
=Actual Sales - Standard/ Budgeted Sales F
+

b) Selling Price Variance

=(actual Selling Price- Budgeted Selling Price)* Actual units Sold

c) Sales Volume Variance

=(Actual quantity- standard Quantity)*Std price

Cross Verification
Sales Variance = Sales price Var+ Sales Volume var

a) Material Cost Variac= Standard Cost/Budgeted Cost- Actual Cost

= (standard Quantity* StandardPrice per unit)- ( Actual Quantity* Actual Price per unit)

b) Material Price Variance Market price

=Actual Quantity*(Strandard Price per Kg- actual price Per kg)

c) Material Efficiency/Usage Variace Input qaulity

= Std price*(Std Quantity- Actual Quantity) Improper material handling
 Wastage

Cross Verification
Material Cost Variance = Material price Var+ Material efficiency var

a) Labor Cost Variace = Standard Cost/Budgeted Cost- Actual Cost

= (standard Hours* Standard Rate per hour)- ( Actual hours* Actual Rate per Hour)

a) Labour Rate Variance Improper anticipation of rate

= Actual hours*(Standard rateper hour - Actual Rate per hour)

b) Labour Efficiency Variace

=Standard Rate per hour (Standard Hours- Actual hourSupervision is lacking
Labour training
Set your standards properly
Cross Verification
Labor Cost Variance = Labor Rate Var+ Labor efficiency var

Fixed Overhead Expenditure variance

= Budgeted Fixed Overhead Expenditure - Actual Fixed Overhead Expenditure

Variable Overhead Exp Var

= Budgeted Variable Overhead Expenditure - Actual Variable Overhead Expenditure
 Actual
Input Quantity
Total cost for Actual Price Per Total Cost Per Total cost for
per Unit of Acutal Quantity
Production Unit of input Unit of output Production
output

7500000 1450 6000 8700000

5000000 110 9 54,000 990.00 5940000

800000 38 4.17 25000 158.33 950000

1000000 167.5 1005000

6800000 1,316 7895000

700000 134 805000

=5000000-5940000
-940000

U
-

<-- Pricing policy <-- Inaccurate Standards

<-- Change by Competitiors
<-- Change in Cost

<-- Change in demand in market - No proper anticipation of demand

<-- Shortage of resources
<-- Change in plans* <-- Inaccurate Standards
<--- Inefficiencies <-- Change in Govt Regulatoins

Anticipate properly

Action required
Change the suppliers/ put penalty clauses
Labour training
Better supervision
 Revised Standard/ Budgeted
Standard Price Standard
Input Quantity per Unit of Total Cost Per Total cost for
Per Unit of Quantity of
output Unit of output Production
input input Total

1500 6000 9000000

100 10 60,000 1000 6000000

40 4 24000 160 960000

167 1000000

1,327 7960000

173 1040000

a) Sales Variance
=Actual Sales - Standard/ Budgeted Sales
1200000 F

b) Selling Price Variance

=(actual Selling Price- Budgeted Selling Price)* Actual units Sold
-300000 U

c) Sales Volume Variance

=(Actual quantity- standard Quantity)*Std price
1500000 F

Cross Verification
Sales Variance = Sales price Var+ Sales Volume var

a) Material Cost Variance = Revised Standard Cost/Budgeted Cost- Actual Cost

= (standard Quantity* StandardPrice per unit)- ( Actual Quantity* Actual Price per unit)
60000 F

b) Material Price Variance

=Actual Quantity*(Strandard Price per Kg- actual price Per kg)
-540000 U

c) Material Efficiency/Usage Variace

= Std price*(Std Quantity- Actual Quantity)
600000 F
 Cross Verification
Material Cost Variance = Material price Var+ Material efficiency var
60000 60000

a) Labor Cost Variace = Standard Cost/Budgeted Cost- Actual Cost

= (standard Hours* Standard Rate per hour)- ( Actual hours* Actual Rate per Hour)

a) Labour Rate Variance

= Actual hours*(Standard rateper hour - Actual Rate per hour)

b) Labour Efficiency Variace

=Standard Rate per hour (Standard Hours- Actual hours)

Cross Verification
Labor Cost Variance = Labor Rate Var+ Labor efficiency var

Fixed Overhead Expenditure variance

= Budgeted Fixed Overhead Expenditure - Actual Fixed Overhead Expenditure

Variable Overhead Exp Var

= Budgeted Variable Overhead Expenditure - Actual Variable Overhead Expenditure
t- Actual Cost
l Price per unit)
Expenditure
 Particulars Standard
Standard Price
Quantity per Standard
Per Unit of
Unit Quantity Total
input

Sales 1500 5000

Material 100 10 50,000

Labor 40 4 20000

Fixed Cost

Total Cost

Profit

a) Sales Variance(actual-standard)
=Actual Sales - Standard Sales
=8700000-7500000 1200000 F

b) Selling Price Variance(actual-budgeted)

=(actual Selling Price- Budgeted Selling Price)* Actual units Sold
-300,000 U

c) Sales Volume Variance(budgeted-standard)

=(Actual quantity- standard Quantity)*Std price
1,500,000 F

Cross Verification
Sales Variance = Sales price Var+ Sales Volume var
1,200,000 =-300000+1500000
1,200,000

a) Material Cost Variance(

= (budgeted Quantity* budgeted Price per unit)- ( Actual Quantity* Actual Price per unit)
#VALUE! F

b) Material Price Variance

=Actual Quantity*(budgeted Price per Kg- actual price Per kg)
-540000 U

c) Material Efficiency Variace

= budgeted price(budgeted Quantity- Actual Quantity)
#VALUE! F
 Cross Verification
Material Cost Variance = Material price Var+ Material efficiency var
#VALUE! =-540000+600000
#VALUE!

a) Labor Cost Variance(budgeted-actual)

= (standard Hours* Standard Rate per hour)- ( Actual hours* Actual Rate per Hour)
#VALUE! F

a) Labour Rate Variance

= Actual hours*(budgeted rateper hour - Actual Rate per hour)
50000 F

b) Labour Efficiency Variace

=budgeted Rate per hour (budgeted Hours- Actual hours)
#VALUE! U

Cross Verification
Labor Cost Variance = Labor Rate Var+ Labor efficiency var
#VALUE! =50000+(-40000)
#VALUE!

Fixed Overhead Expenditure variance

= Budgeted Fixed Overhead Expenditure - Actual Fixed Overhead Expenditure
-5000
tandard Actual

Total Cost Per Total cost for Actual Price Per Quantity per Total Cost Per
Acutal Quantity
Unit of output Production Unit of input Unit Unit of output

1360 7500000 1450 6000 1315.83

1000 5000000 110 9 54,000 990.00

160 800000 38 4.17 25000 158.33

200 1000000 167.5

1,360 6800000 1,316

140 700000 134

* Actual Price per unit)

l Rate per Hour)
 Standard for Actual Quantity
Standard Price
Total cost for Quantity per Standard Total Cost Per Total cost for
Per Unit of
Production Unit Quantity Total Unit of output Production
input

8700000 1500 d #VALUE! #VALUE!

5940000 100 10 #VALUE! 1000 #VALUE!

950000 40 4 #VALUE! 160 #VALUE!

1005000 #VALUE! 1000000

7895000 #VALUE! #VALUE!

805000 #VALUE! #VALUE!

a) Sales Variance
=Actual Sales - Standard Sales

b) Selling Price Variance

=(actual Selling Price- Budgeted Selling Price)* Actual units Sold

c) Sales Volume Variance

=(Actual quantity- standard Quantity)*Std price

Cross Verification
Sales Variance = Sales price Var+ Sales Volume var

a) Material Cost Variace

= (standard Quantity* StandardPrice per unit)- ( Actual Quantity* Actual Price per unit)

b) Material Price Variance

=Actual Quantity*(Strandard Price per Kg- actual price Per kg)

c) Material Efficiency Variace

= Std price(Std Quantity- Actual Quantity)

Cross Verification
Material Cost Variance = Material price Var+ Material efficiency var

a) Labor Cost Variace

= (standard Hours* Standard Rate per hour)- ( Actual hours* Actual Rate per Hour)

a) Labour Rate Variance

= Actual hours*(Standard rateper hour - Actual Rate per hour)

b) Labour Efficiency Variace

=Standard Rate per hour (Standard Hours- Actual hours)

Cross Verification
Labor Cost Variance = Labor Rate Var+ Labor efficiency var

Fixed Overhead Expenditure variance

= Budgeted Fixed Overhead Expenditure - Actual Fixed Overhead Expenditure
y* Actual Price per unit)

tual Rate per Hour)

d Expenditure