Using actual quantity but standard(budgeted) costs/estimate
2)Steps
Calc Budget, Flexed, Actual
Calc Total costs variances (Actual - Flexed) [sales +ve -> (F), cost +ve -> (A)]
Calc Invdivual variances
Summarize values (ensure tally)
a)Sales Variance
b)Direct material (graph similar to sales variance)
c)Direct labour
active = actual - idle
d)Variable overhead
d)Fixed overhead
2 comments:
Good post and this post helped me alot in my college assignement. Thanks you for your information.
Well I agree but I dream the collection should have more info then it has.
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