Variance Analysis

Direct Materials:

Price = Actual Quantity Purchased * (Actual Price - Standard Price)

Quantity Usage = Standard Price * (Actual Quantity Used - Standard Quantity Allowed)

Direct Labor:

Rate = Actual Hours * (Actual Rate/Price - Standard Rate/Price)

Efficiency = Standard Rate * (Actual Hours - Standard Hours Allowed)

Manufacturing Overhead Variance:

Spending = Actual Overhead Costs Incurred - (Actual Hours Worked * Standard O/H Rate)

Efficiency = (Actual Hours Worked * Standard O/H rate) - (Standard Hours Allowed * Standard O/H Rate)

Volume = (Standard Hours Allowed * Standard O/H Rate) - Applied O/H

Sales & CM Variance:

Sales Price = Actual Units Sold * (Actual Price/Unit - Standard Price/Unit)

Sales Volume = Standard CM/Unit * (Actual Units Sold - Budgeted Sales Unit)