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standard costing

Forums › ACCA Forums › ACCA MA Management Accounting Forums › standard costing

  • This topic has 6 replies, 7 voices, and was last updated 15 years ago by Anonymous.
Viewing 7 posts - 1 through 7 (of 7 total)
  • Author
    Posts
  • April 20, 2010 at 10:25 pm #43599
    nakeshia
    Member
    • Topics: 1
    • Replies: 5
    • ☆

    Can someone please help me out with the variances I would really appreciate it if i can get a formula sheet with the list of variances and how they are calculated.

    Thanks you.

    April 23, 2010 at 3:35 pm #59447
    abdulwahabsiddiq
    Member
    • Topics: 16
    • Replies: 54
    • ☆☆

    SALES :
    price variance (AQ*AP)-(AQ*BP)
    volume variance (AQ*SM)-(BQ*SM) where SM = in margin CONTRIBUTION
    SM = in absorption PROFIT

    MATERIAL:
    (SQ*SR)-
    = USAGE VARIANCE
    (AQ*SR)-
    = PRICE VARIANCE
    (AQ*AR)

    LABOUR:

    (SH*SR)-
    =EFFICIENCY VARIANCE
    (AH*SR)-
    =RATE VARIANCE
    (AH*AR)

    VARIABLE OH:

    (SH*SR)-
    =EFFICIENCY VARIANCE
    (AH*SR)-
    =EXPENDITURE VARIANCE
    (AH*AR)

    FIXED OH:
    IN MARGIN=> EXPENDITURE
    IN ABSORPTION =>VOLUME (CAPACITY , EFFICIENCY) AND EXPENDITURE

    THIS IS COMPLETE PROFORMA JUST PUT THE FIGURES

    (SH * SR)-
    efficiency variance
    (AH * SR)-
    capacity variance
    (BH * SR)-
    expenditure variance
    (AH * AR)

    AND FOR VOLUME (SH*SR)-
    (BH*SR)
    IN THIS PROFORMA (SR) IS MEAN BY FOAR
    Hope this help you!

    April 26, 2010 at 8:31 am #59451
    Anonymous
    Inactive
    • Topics: 0
    • Replies: 3
    • ☆

    thanks its helpful

    April 26, 2010 at 6:16 pm #59452
    Anonymous
    Inactive
    • Topics: 0
    • Replies: 1
    • ☆

    hi can anyone help me out with some notesand examples for absorption and marginal costing and standing costing please

    April 26, 2010 at 7:12 pm #59454
    Mrtaza
    Member
    • Topics: 10
    • Replies: 111
    • ☆☆
    Quote:
    Tammi wrote HI there,

    You do not have to remember all the formula of variances as they are all based on logic. Still I am posting the list to better understand them.

    Sales variances

    Sales price variance:
    Change in budgeted and actual selling price (per unit) x actual sales
    Budgeted selling price greater actual selling price = A
    Budgeted selling price lesser actual selling price = F

    Sales volume variance:
    Change in budgeted and actual sales x budgeted profit/contribution
    Budgeted sales greater actual sales = A
    Budgeted sales lesser actual sales = F

    Materials cost variances

    Materials price variance:
    Change in budgeted and actual cost (per kg, etc.) x purchased material (quantity)
    Budgeted cost (per unit) greater actual cost = F
    Budgeted cost lesser actual cost = A

    Materials usage variance:
    Change in standard and actual materials usage x budgeted cost (per kg, etc.)
    Standard materials usage greater actual materials usage = F
    Standard materials usage lesser actual materials usage = A

    Total materials variance
    Materials price variance + materials usage variance
    or
    Standard materials cost – actual materials cost
    Standard materials cost greater actual materials cost = F
    Standard materials cost lesser actual materials cost = A

    Labour cost variances

    Labour rate/price variance:
    Change in budgeted and actual cost (per hour) x actual hours
    Budgeted cost (per hour) greater actual cost = F
    Budgeted cost (per hour) lesser actual cost = A

    Labour efficiency variance:
    Change in standard and actual hours x budgeted cost (per hour)
    Standard hours greater actual hours = F
    Standard hours lesser actual hours = A

    Labour total variance:
    Labour rate/price variance + Labour efficiency variance
    or
    Standard labour cost (of actual production) – actual labour cost
    Standard labour cost greater actual labour cost = F
    Standard labour cost lesser actual labour cost = A

    Variable overhead variances

    Variable overhead expenditure variance
    Change in standard and actual cost (per hour) x actual hours
    Standard cost (per hour) greater actual cost = F
    Standard cost (per hour) lesser actual cost = A

    Variable overhead efficiency variance:
    Change in standard and actual hours x budgeted cost (per hour)
    Standard hours greater actual hours = F
    Standard hours lesser actual hours = A

    Variable overhead total variance:
    Variable overhead expenditure variance + Variable overhead efficiency variance
    or
    Standard variable overhead (of production) – actual variable overhead
    Standard variable overhead greater actual variable overhead = F
    Standard variable overhead lesser actual variable overhead = A

    If interested, I will also share fixed overhead variances.

    Best wishes,
    Tammi

    April 27, 2010 at 1:32 pm #59455
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54681
    • ☆☆☆☆☆

    @bravefencer3000 said:
    hi can anyone help me out with some notesand examples for absorption and marginal costing and standing costing please

    You can download the course notes from this website – they have chapters on absorption and marginal costing, and standard costing.
    There are some examples in the course notes, but you really need to get a Revision Kit to practice lots and lots of questions.

    May 19, 2010 at 2:08 am #59456
    Anonymous
    Inactive
    • Topics: 0
    • Replies: 4
    • ☆

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