Sales volume variance?
Salex mix variance + sales quantity variance OR (actual volume - budgeted volume) * standard profit per unit
Favourable if more sales
What is meant by standard cost?
The planned cost of a unit of a product
Are standard costs linked to the original budget?
Yes
Sales price variance?
(Actual price - standard price) * actual volume
Favourable if more sales
Difference between original and flexed budget?
Flexed budget yues the same cost and revenue rates as the original budget but scales them to match actual output or activity
Materials price variance?
Actual materials purchases at standard price - actual materials purchased at actual price
Favourable if actual costs are lower
Materials usage variance?
(Standard materials for actual production - actual materials used at actual production) * standard price per kg
Favourable if actual materials used are lower
Labour rate variance?
Actual hours paid at standard rate - Actual hours paid at actual rate
Favourable if actual hourly rate is less than standard
Idle time variance?
(Hours worked - hours paid) * standard hourly rate
Favourable when hours paid are less than hours worked
Labour efficiency variance?
(Actual hours worked - standard hours for actual output) * standard rate per hour
Favourable when actual hours worked are less than standard
Variable overhead rate variance?
(Labour hours worked × standard variable overhead rate per hour) - actual variable overhead cost
Favourable when actual costs are less than standard
Variable Overhead Efficiency Variance?
(Standard labour hours for actual production - labour hours worked) * standard variable overhead rate per hour
Favourable when actual costs are lower than standard
Fixed Overhead Expenditure Variance?
(Budgeted fixed cost - actual fixed cost)
Favourable if actual costs are lower than budgeted
Fixed Overhead Volume Variance?
(Budgeted production - actual production) * standard fixed overhead rate per unit
Favourable when actual output exceeds the budget
Fixed Overhead Capacity Variance?
(Budgeted labour hours - actual labour hours) * standard rate per hour
Favourable when actual output is greater than budgeted
Fixed Overhead Efficiency Variance?
(Standard hours for actual output - actual labour hours) * standard rate per hour
Favourable if actual costs are lower
What is material usage variance split into?
Mix variance
Yield variance
Basis for mix variance?
The materials may be used in different proportions to the standard. This may lead to a different average cost
Basis for yield variance?
The standard may assume that there is some level of standard loss. The actual loss may be more or less than the standard loss
Mix variance calculation
(Actual quantity in standard mix - actual quantity used) * standard cost
Favourable if actual cost of mix is less than standard cost
Yield variance calculation
Actual output - litres/kg should yield
Sales mix variance?
(Actual sales - actual sales in budgeted mix) * standard contribution
Sales quantity variance?
(actual sales quantity in budgeted proportions − budgeted sales quantity) × standard contribution per unit
What is the sales volume split into?
Market size variance and market share variance
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B Formulas23
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B Spreadsheet24
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B Theory125
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C Theory119
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C Theory 2 (ACCA Study Hub)132
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C Section C Theory63
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C Spreadsheet59
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C Formulas73
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D Theory203
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D Formulas63
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D Spreadsheet99
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D Theory (Variance Intepretation)127
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D Section C Theory90
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E Theory154
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E Theory 2128
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E Formulas65
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E Spreadsheet63
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E Section C Theory77
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How to Pass Exam11
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Annoying stuff37
