Uploaded by Moe Oo Kabyar

Variance (Revised)

advertisement
Variance
1. Material
(i) Material cost variance
=
Standard Material Cost ~Actual Material Cost
(ii) Material price variance
=
(Standard material price per usage ~ Actual material price per usage) x
Actual Material Quantity Purchase
(iii) Material usage variance
=
(Standard usage for actual production ~ Actual usage) x Standard price
per usage
***Material Cost per unit
=
Material price per usage x Material usage per unit
(i) Labour cost variance
=
Standard Labour Cost for actual production ~ Actual Cost Labour
(ii) Labour rate variance
=
(Standard rate per hour ~ Actual rate per hour) x Actual Hour paid
2 Labour
(iii) Labour efficiency variance =
(iv) Ideal Time Variance
(Standard hours for actual production ~ Actual hours) x Standard rate
per hour
=
Ideal Time
x Standard labour rate
3.Variance Overhead
(i) Variable Overhead cost variance
= Standard Variable O/H cost for actual production ~ Actual
Variable O/H Cost
(ii) Variable overhead expenditure variance =(SVOAR per hour ~ AVOAR per hour) x Actual hours
SVOAR = Standard variable overhead absorption rate
AVOAR = Actual variable overhead absorption rate
(iii) Variable overhead efficiency variance
= (Standard hours for actual production ~ Actual hours) x
SVOAR per hour
4. Fixed overhead
(i) Fixed overhead cost variance
=Standard Fixed O/H cost ~ Actual Fixed O/H cost
(ii) Fixed overhead expenditure variance
=Budgeted Fixed O/H cost for budget production ~ Actual
Fixed O/H cost for actual production
(iii) Fixed overhead volume variance
=
(Budgeted Production unit ~ Actual Production unit) x
SFOAR per unit
(iv) Fixed overhead efficiency variance
(v) Fixed overhead capacity variance
= (Standard hours for actual production ~Actual hours) x
SFOAR per hour
=
(Budgeted hour for budgeted production ~ Actual hour) x
SFOAR per hour
5. Sales
(i) Sales price variance
= (Standard selling price ~ Actual selling price) x Actual sales Quantity
(ii) Sales volume variance
= (Budgeted sales quantity ~ Actual sales quantity) x Standard profit per unit
**** Standard Profit per unit = Standard selling price per unit - standard total cost per unit
Standard Cost per unit
= Direct Material cost per unit + Direct Labour cost per unit + Variable
O/H Cost per unit + Fixed O/H Cost per unit
*** Note
Cost - Standard > Actual
=
Favourable
Standard < Actual
=
Adverse
Sales - Standard > Actual
=
Adverse
Standard < Actual
=
Favourable
17.5/Page New – 485/ Old 466
1. Material usage variance
1 unit
=
(Standard usage for actual production ~ Actual usage) x Standard price
per usage
=
( 30 meters x 1040 units) ~ 31200 meters x £ 12
30 meters
1040 unit
units x 30 units
1040
=
2. Material price variance
Nil
=
(Standard material price per usage ~ Actual material price per usage) x
Actual Material Quantity Purchase
374400/31200
£ 12 ~ £ 12 x 31200 meters = Nil
=
3. Labour rate variance
11440 hrs
1hr
136708
£136708
? 1/11440 x
=
(Standard rate per hour ~ Actual rate per hour) x Actual Hour paid
=
(£ 12 ~ £ 11.95) x 11440 hrs
=
£ 572 (Favourable)
4. Labour efficiency variance =
1 unit
10hrs
1040 units
x 10hrs
? 1040units
5. Labour cost variance
(Standard hours for actual production ~ Actual hours) x Standard rate
per hour
=
(10 hrs x 1040 units ) ~ 11440 hrs x £ 12
=
£ 12480 (Favourable)
= Standard Labour Cost for actual production ~ Actual Cost Labour
= ( £120 x 1040 units) ~ £136708
= 11980 (Adverse)
6. Fixed O/H Expenditure Variance = Budgeted Fixed O/H cost for budget production ~ Actual Fixed O/H
cost for actual production
= £ 157.50 x 1200 units ~ £ 207,000
= £ 18000 ( Adverse)
7. Fixed overhead efficiency variance = (Standard hours for actual production ~Actual hours) x SFOAR
per hour
= 10hrs x 1040 units ~ 11440 units x £ 15.75
= £ 16380 ( Adverse)
8. Fixed overhead volume variance
=
(Budgeted Production unit ~ Actual Production unit) x SFOAR
per unit
= ( 1200 units ~ 1040 units ) x £ 157.5
=
£ 163800 ( Adverse)
=
(Budgeted hour for budgeted production ~ Actual hour) x
SFOAR per hour
9. Fixed overhead capacity variance
=
(10hrs x 1200 units) ~ 11440 hrs x £ 15.75
=
12000 hrs ~ 11440 hrs x £ 15.75
=
£ 8820 (Adverse)
Statement reconciling the standard cost of actual production with the actual cost of actual production
Favourable
Adverse
Standard cost (£ 637.50 x 1040 units)
663000
Direct labour hour variance
Direct labour rate variance
£
12480
572
Fixed O/H Expenditure variance
18000
Fixed O/H Efficiency variance
16380
Fixed O/H capacity variance
8820
55108 (A)
55680
718108
Actual Cost
572
***************************************************************
17.3/Page New – 485/ Old 465
1. Material cost variance
=
Std .Material Cost per unit
Standard Material Cost ~Actual Material Cost
=
£ 1 x 5400 kg ~ 10600 kg x £0.6
=
£960 (Adverse)
= Budget material usage x std. Material usage per unit/ Budgeted Production
Unit
= 10000kgs x 0.50/5000 units = £ 1
2. Material usage variance
5400 unit
kgs
1 unit
10600 = 2kgs
=
(Standard usage for actual production ~ Actual usage) x Standard price
per usage
=
( 2kgs x 5400 units) ~ 10600 meters x £ 0.50
10600
1/5400 x
=
3. Material price variance
£ 100 (Favourable)
=
(Standard material price per usage ~ Actual material price per usage) x
Actual Material Quantity Purchase
£ 0.50 ~ £ 0.60 x 10600 kgs = £ 1060 (Adverse)
=
4. Labour cost variance
£ 12
1hr
0.50hr
12
= Standard Labour Cost for actual production ~ Actual Cost Labour
= ( £6 x 5400 units) ~ ( £6 .27 x 5400 units) =£ 1458(Adverse)
? 0.50 x
5. Labour efficiency variance =
1unit
0.50 hrs
5400 units
x 0.50
? 5400
6. Labour rate variance
(Standard hours for actual production ~ Actual hours) x Standard rate
per hour
=
2700 hrs ~ 2970 hrs x £ 12
=
£ 3240 (Adverse)
=
(Standard rate per hour ~ Actual rate per hour) x Actual Hour paid
=
(£ 12 ~ £ 11.40) x 2970 hrs
=
£ 1782 (Favourable)
7. Fixed O/H Expenditure Variance = Budgeted Fixed O/H cost for budget production ~ Actual Fixed O/H
cost for actual production
= £ 10000 ~ £ 10300
= £ 300 ( Adverse)
8.Fixed overhead efficiency variance = (Standard hours for actual production ~Actual hours) x SFOAR
per hour
= 2700 hrs ~ 2970 hrs x £ 4
= £ 3240( Adverse)
FOAR per hour = Fixed O/H cost/ Direct labour hour for budget = 10000/2500 = £ 4
9. Fixed overhead volume variance
=
(Budgeted Production unit ~ Actual Production unit) x SFOAR
per unit
= ( 5000 units ~ 5400 units ) x £ 2
=
£ 800 ( Favourable )
FOAR per hour = Fixed O/H cost/ Budget production unit = 10000/5000 = £ 2
9. Fixed overhead capacity variance
10. Sales price variance
=
(Budgeted hour for budgeted production ~ Actual hour) x
SFOAR per hour
=
2500hrs ~ 2970 hrs x £ 2
=
£ 940 ( Favourable )
= (Standard selling price ~ Actual selling price) x Actual sales Quantity
= (£ 14 ~ £ 15) x 4900 units =£ 4900 (A)
11. Sales volume variance
= (Budgeted sales quantity ~ Actual sales quantity) x Standard profit per unit
= 5000 units ~ 4900 units x £5 = £500 (Adverse)
Standard profit per unit
= Std selling price per unit ~ standard total cost per unit = £ 14 -£9 = £5
Standard total cost per unit
Direct material cost per unit
1
Direct labour cost per unit
6
Fixed O/H cost per unit
2
9
Statement reconciling the standard cost of actual production with the actual cost of actual production
Favourable
Adverse
Budgeted profit (£25000 -£ 3000)
£
22000
Sale volume profit variance
500
Sales price varince
4900
Direct material usage variance
100
4400 (F)
26400
Direct material price variance
1060
Direct labour hour variance
3240
Direct labour rate variance
1782
Fixed O/H Expenditure variance
Fixed O/H Volume variance
Admin ( 3100- 3000)
Actual Profit
300
800
100
24382 (A)
24382
*****************************************************************************
17.23 Pg 482(New)
Material usage variance
1500 unit
kgs
750
1550 units
?
(Standard usage for actual production ~ Actual usage) x Standard price per
usage
=
( 1550units /1500units x 750kgs) ~ Actual usage x £ 4500/750
=
150 (A) = 775 kgs ~ Actual usage x £6
150 A = 4650 kgs ~ £6 x Actual usage
Actual usage = 800 kgs
Material price variance
=
(Standard material price per usage ~ Actual material price per usage) x
Actual Material Quantity Purchase
= £ 6 ~ Actual material price per usage x 1000 kgs = £ 1000(Favourable)
£ 6 ~ Actual material price per usage = £ 1
Actual material price per usage = £ 5
Actual Direct Material cost = usage x direct material per usage
= £ 1000 x £ 5
= £ 5000
Labour efficiency variance =
(Standard hours for actual production ~ Actual hours) x Standard rate
per hour
150 A
= ( 0.75 x 1550 units ~ Actual hours ) x £ 4
=
Labour rate variance
=
200A
1200hrs
(Standard rate per hour ~ Actual rate per hour) x Actual Hour paid
=
200A
(£ 4 ~ Actual rate per hour) x 1200 hrs
=
£ 4800~ 1200 x Actual rate per hour
= £4.17
Labour Cost = Actual Hour x rate per hr
= 1200 hrs x £4.17
= £5004
= Standard Variable O/H cost for actual production ~ Actual
Variable O/H Cost
Variable Overhead cost variance
= (1.5 x 1550 ) ~ Actual Variable O/H Cost
£600 +£ 75 A
2325 ~ Actual Variable O/H Cost =675 A
Actual Variable O/H Cost
= £3000
= Standard Fixed O/H cost for actual production ~ Actual Fixed O/H
Cost
Fixed Overhead cost variance
2650 F= (£3x 1550 ) ~ Actual Fixed O/H Cost
Actual Fixed O/H Cost = £2000
Actual sale volume = ?
Budgeted Profti = 4250
Std. sale volume = 1500units
Std profit per unit = 4250/1500 = £2.83 per unit
Sale volume variance =850A
Std Sale volume ~ Actual Sale volume =850A
1500 unit ~ Actual Sale volume = 300 units (A) = 1200 units
£2.83 ---------- 1 unit
850 -----------850/2.83 = 300 units
Sales price variance
4000A
= (Standard selling price ~ Actual selling price) x Actual sales Quantity
= (£ 13.33~ Actual selling price) x 1200 units
Actual selling price =
***************************************************
Chapter (18)
Sales Variance
1. Sales Mix Contribution variance
SMCV= (Actual Sales Quantity ~ Actual Sales Quantity in Budgeted portion ) x Std. Contribution
per unit
2. Sales Yield Contribution Variance
SYCV= (Budgeted Sales Quantity ~ Actual Sales Quantity in Budgeted portion ) x Std.
Contribution per unit
3. Material Mix Variance
= (Actual Material Quantity ~ Actual Material Quantity in Standard Mix) x Standard material price
per usage
4. Material Yield Variance
= (Standard Material Quantity for production unit ~ Actual Material Quantity in Standard Mix) x
Standard material price per usage
18.13 Pg 506
SMCV= (Actual Sales Quantity ~ Actual Sales Quantity in Budgeted portion ) x Std. Contribution
per unit
Full Valets = (4000 ~ 7980 (4000 +3980) ) x 3600/ 5600 x (£ 50 x44.6% = £ 22.3)
=( 4000~ 5130) x £ 22.3 = £25199 A
£25199 A
Mini Valets = (3980 ~ 7980 (4000 +3980) ) x 2000/ 5600 x (£ 30 x55% = £ 16.5)
=( 3980~ 2850) x £ 16.5 = £18647F
£18645 F
86554 (A)
2.Sales Yield Contribution Variance
SYCV= (Budgeted Sales Quantity ~ Actual Sales Quantity in Budgeted portion ) x Std.
Contribution per unit
Full Valets = (3600 ~ 7980 (4000 +3980) ) x 3600/ 5600 x (£ 50 x44.6% = £ 22.3)
=( 4000~ 5130) x £ 22.3 = £34119 F
£34119 F
Mini Valets = (2000 ~ 7980 (4000 +3980) ) x 2000/ 5600 x (£ 30 x55% = £ 16.5)
=( 3980~ 2850) x £ 16.5 = £14025F
£14025 F
48144 (F)
****************************************************
18.14 Pg 507
1. Material Mix Variance
= (Actual Material Quantity ~ Actual Material Quantity in Standard Mix) x Standard material price
per usage
L
= (34080 ~ 181512 x 0.25 /1.35) x 10
£4666.67(A)
C
= (83232 ~ 181512 x 0.6 /1.35) x 4
£10240 (A)
S
= (64200 ~ 181512 x 0.5 /1.35) x 3
£9080
(F)
£ 582667 (A)
2. Material Yield Variance
= (Standard Material Quantity for production unit ~ Actual Material Quantity in Standard Mix) x
Standard material price per usage
L
= (0.25 x 136000 ~ 33613.33) x 10
£3866.67(F)
C
= (0.6 x 136000 ~ 80672 ) x 4
£3712
S
= (0.5 x 136000
~ 67226.67) x 3
(F)
£2319.99 (F)
£ 582667 (A)
18.15 Page -507
Material Usage Variance
=(Std Material Usage for Actual Production ~ Actual Material Usage ) x Standard material price
1kg = 2200kg
per usage
101000 = ?
H
= (20 x 101000 ~ 2200000) x 0.02
$3600
(A)
S
= (15 x 101000 ~ 1400000) x 0.03
$3450
(F)
$1000
(A)
$1150
(A)
Syr = (10 x 101000 ~ 1400000) x 0.025
1. Material Mix Variance
= (Actual Material Quantity ~ Actual Material Quantity in Standard Mix) x Standard material price
per usage
H = (2200000 ~ 4650000 x 20 /45) x 0.02
$2666.67 (A)
S = (1400000 ~ 4650000 x 15 /45) x 0.03
$4500
(F)
Syr = (1050000 ~ 4650000 x 10 /45) x 0.025
$416.67
(A)
$1416.66 (F)
1kg = 1000g
2200kg
= ?
Material Quantity (Yield )Variance
= (Standard Material Quantity for production unit ~ Actual Material Quantity in Standard Mix) x
Standard material price per usage
45 = 4650000
H
= (20kg x 101000 ~ 2066666.67) x 0.02
S
= (15kg x 101000 ~1550000) x 0.03
Syr = (10kg x 101000 ~1033333.33) x 0.025
20
= ?
$933.33
(A)
$ 1050
(A)
$583.33 (A)
$2566.66 (A)
**************************************
Download