Scribd
Upload
32 views1 page

Sales Volume and Rate Variance Formulas

This document outlines five types of variances used in managerial accounting: sales volume variance, labor rate variance, direct material quantity variance, variable overhead spending variance, and fixed overhead spending variance. Each variance is calculated using a formula comparing actual and budgeted/standard amounts for items like units sold, labor rates, material quantities, overhead rates, and fixed overhead costs.

Uploaded by

Ahmad Iqbal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
32 views1 page

Sales Volume and Rate Variance Formulas

This document outlines five types of variances used in managerial accounting: sales volume variance, labor rate variance, direct material quantity variance, variable overhead spending variance, and fixed overhead spending variance. Each variance is calculated using a formula comparing actual and budgeted/standard amounts for items like units sold, labor rates, material quantities, overhead rates, and fixed overhead costs.

Uploaded by

Ahmad Iqbal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Sales Volume Variance

(Actual units sold - Budgeted units sold) x Budgeted price per unit
= Sales volume variance

Labor Rate Variance


(Actual rate - Standard rate) x Actual hours worked = Labor rate variance

Direct Material Quantity Variance

(SQ AQ) SP

Variable Overhead Spending Variance


Actual hours worked x (Actual overhead rate - standard overhead rate)
= Variable overhead spending variance

Fixed Overhead Spending Variance


Actual fixed overhead - Budgeted fixed overhead = Fixed overhead spending variance

You might also like