Essay

Only available on StudyMode
  • Download(s) : 25
  • Published : December 11, 2012
Open Document
Text Preview
Sales margin/contributions variances| |
| | | | |
actual sales made this period| | |
standard mix proportion is:| | |
actual sales at standard mix| | |
| | | | |
| | | | |
budgeted sales | | | |
budgeted sales margin| | |
=budgeted sales revenue| | |
| | | | |
| | | | |
actual sales| | | |
actual sales margin| | | |
=actual sales revenue| | |
| | | | |
| | | | |
* * total sales margin variance| | |
| | | | |
| | | | |
budgeted sales| | | |
budgeted sales contribution| | |
=budgeted total contribution| | |
| | | | |
| | | | |
actual sales| | | |
actual contribution| | | |
=actual total contribution| | |
| | | | |
| | | | |
* * total sales contribution variance| |

Sales margin variances
* sales margin price variance
(standard sales margin-actual sales margin)x actual sales

* sales margin mix variance
(actual sales at standard mix-actual sales)x budgeted sales margin

* sales margin volume variance
(actual sales at standard mix-budgeted sales)x budgeted sales margin

Check:
Sales margin price variance
Sales margin mix variance
Sales margin volume variance
=Total sales margin variance

Sales contribution variance
* sales contribution price
(standard sales contribution-actual sales contribution)x actual sales

* sales contribution mix
(actual sales at standard mix-actual sales)x standard sales contribution

* sales contribution volume
(actual sales at standard mix-budgeted sales)x standard sales contribution

Check:
Sales contribution price variance
Sales contribution mix variance
Sales contribution volume variance
=Total sales contribution variance

Material yield/mix & price variances
Standard material cost per unit
No. of unit produced this period
Standard material cost of output produced
Actual material costs incurred this period
=Total material variance

* Material price variance: Mat. …………. Mat. ………….. Mat. ……………. Mat. ……………… Mat. ………………. Standard cost per unit
Actual cost per unit
Difference
X actual quantity used
=Material price variance

* Material usage variance: Mat. …………. Mat. ………….. Mat. ……………. Mat. ……………… Mat. ………………. Standard quantity for actual output
Actual quantity used
Difference
X standard cost per kg
=Material usage variance

Check:
Price variance
Usage variance
=Total variance

* Material mix variance: Mat. …………. Mat. ………….. Mat. ……………. Mat. ……………… Mat. ………………. Standard mix of materials(kg)
Standard mix of materials(%)
Materials input this period:
Input materials at standard mix
Actual material used
Difference
X standard cost per unit
=Material mix variance
* Material yield variance
Materials input this period
Standard qua.of raw mat.per unit of output
Therefore standard yield for actual material input is:
Actual output produced this period
Difference
X Standard material cost per unit of output
=Material yield variance

Check:
Mix variance
Yield variance
=Total usage variance

Labour/Fixed overhead variances
Output produced this period
Standard labour cost per unit
Standard labour cost per actual output
Actual labour cost for this period
=Total labour variance

* Labour rate variance
AH x (SR-AR)

* Labour efficiency variance
SR x (SH-AH)

* Idle time variance
IT x SR

* Overtime variance
OT x SR

Check:
Labour rate variance
Labour efficiency variance
Idle time variance
Overtime variance
=Total labour variance

Standard fixed overhead absorption rate (SFOAR)
Labour hours per unit
Fixed overheads per unit of output
Actual output produced
Standard fixed costs for actual output
Actual fixed overheads incurred
=Total fixed overhead variance

* Fixed overhead expenditure variance
budgeted costs-...
tracking img