variances

Question 1

Materials price sub-variance

Answer 1

​Actual quantity x (Standard price per unit – Actual price per unit)

Question 2

Materials usage sub-variance

Answer 2

Standard price x (Standard quantity – Actual quantity)

Question 3

Labour rate sub-variance

Answer 3

Actual labour hours x (Standard hourly rate – Actual hourly rate)

Question 4

Labour efficiency sub-variance

Answer 4

​Standard rate x (Standard hours – Actual hours)