Subject: Costing Techniques and Responsibility Accounting Unit 02: Standard Costing Material & Labour Variance (Formula)

1.	Material Cost Variance :-	(SQ x SP) – (AQ x AP)
	(Standard Quantity x Standard Price) – (Actual Quantity x Actual Price)
2.	Material Price Variance: -	(SP- AP) x AQ
	(Standard Price - Actual Price) x Actual Quantity
3.	Material Usage Variance :-	(SQ - AQ) x SP
	(Standard Quantity - Actual Quantity) x Standard Price
4.	Material Mix Variance: -	(RSM- AQ) x SP
	(Revised Standard Mix - Actual Quantity) x Standard Price
4.1	Revised Standard Mix: -	S Q x TAQ TSQ
	Standard Quantity x Total Actual Quantity Total Standard Quantity
5.	Material Yield Variance: -	(A.O - RSY) x SC
	(Actual Output - Revised Standard Yield) x Standard Cost per unit of output
5.1	Revised Standard Yield: -	A.O x TAQ TSQ
	Actual Output   x Total Actual Quantity Total Standard Quantity
5.2	Standard Cost per unit of output:-	T.S.C A.O
	Total Standard Cost Actual Output
5.2.1	Total Standard Cost:-	(SQ x SP)
	(Standard Quantity x Standard Price)
6.	Verification :-
	MCV = MPV + MUV
	Material Cost Variance = (Material Price Variance + Material Usage Variance)
7.	Labour Cost Variance :-	(SH  x SR) – (AH x AR)
	(Standard Hours x Standard Rate) – (Actual Hours x Actual Rate)
8.	Labour Rate Variance :-	(SR - AR) x AH
	(Standard Rate –Actual Rate) x Actual Hours
9.	Labour Efficiency Variance :-	(SH - AH) x SR
	(Standard Hours - Actual Hours) x Standard Rate
10.	Labour Mix Variance: -	(RSM- AH) x SR
	(Revised Standard Mix - Actual Hours) x Standard Rate
10.1	Revised Standard Mix: -	S H x TAH TSH
	Standard Hours   x Total Actual Hours Total Standard Hours
11.	Idle Time Variance:-	(IT x SR)
	(Idle Time x Standard Rate)
12.	Labour Yield Variance: -	(A.O - RSY) x SC
	(Actual Output - Revised Standard Yield) x Standard Cost per unit of output
12.1	Revised Standard Yield: -	A.O x TAH TSH
	Actual Output  x Total Actual Hour Total Standard Hours
12.2	Standard Cost per unit of output:-	T.S.C A.O
	Total Standard Cost Actual Output
12.2.1	Total Standard Cost:-	(SH  x SR)
	(Standard Hours x Standard Rate)
13.	Verification :-
	LCV = LRV + LEV + ITV
	Labour Cost Variance = (Labour Rate Variance + Labour Efficiency Variance + Idle Time Variance)