1
Q
What is the material price variance formula?
A
AQPXAP
difference=MPV
AQPXSP
2
Q
What is the material usage variance?
A
AQUXSP
difference is the MUV
SQAPXSP
3
Q
What is the formula for total material variance?
A
MPV
Difference is the total material variance
MUV
4
Q
What is the labour rate, idle time and efficiency variance formula?
A
AHPXAR
Difference is the rate
AHPXSR
Difference is the idle time
AHWXSR
Difference is the efficiency
SHAPXSR
SHAP is standard hours for one unit x actual units produced
5
Q
What is the formula for fixed overhead expenditure and volume variance?
A
Actual expenditure
Difference is the expenditure
Budgeted expenditure
Difference is the volume variance
Actual units x OAR
OAR=budgeted fixed overheads/budgeted units
