These easy to remember formulas are an addition to the Variance Table which I have put up a couple of months ago.
Price Variance = [Actual Price- Budgeted Price] x Actual Volume
Mix and Volume Variance = [Actual Volume-Budgeted Volume] x CM/unit*
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Mix Variance = [(Total Actual Volume x Budgeted %)- Total Actual Volume] x CM/unit
Volume Variance = [(Total Actual Volume x Budgeted %) - Budget Sales] x CM/unit
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Variable Cost Variances
DM Variance = [Budgeted DM rate x Materials Produced]- Actual DM
DL Variance = [Budgeted DL rate x Materials Produced]- Actual DL
VOH Variance = [Budgeted VOH rate x Materials Produced]- Actual VOH
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Fixed Cost Variances
Selling Variances = Actual Selling Cost- Budgeted Selling Cost
Administrative Variances = Actual Admin. Cost- Budgeted Admin. Cost
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