This Powerpoint Presentation deals with Standard Costing Basic formulaes.

1. Standard Costing
Basics with formulas

2. Material cost
Variance
M1-M2
Material Price
variance
M3-M2
Material Usage
Variance
M1-M3
Material Mix
Variance
M4-M3
Material Yield
Variance
M1-M4

3. • M1=
𝑆𝑄
𝑆𝑂
×AO× 𝑆𝑃
or
ASQ×SP
where ASQ=
𝑆𝑄
𝑆𝑂
×AO
• M2= AQ×AP
• M3= AQ×SP
• M4= RSQ×SP
where RSQ=Total AQ× Ratio of SQ
• AQ= Actual Quantity
• SQ= Standard Quantity
• SP= Standard Price
• AP= Actual Price
• SO= Standard Output
• AO= Actual Output
• ASQ= Actual Standard Quantity
• RSQ= Revised Standard Quantity

4. Labour Cost
Variance
L1-L2
Labour Rate of Pay
Variance
L3-L2
Labour Total
Efficiency Variance
L1-L3
Labour Mix Variance
L4-L3
Idle time Variance
L5-L4
Labour Efficiency
Variance
L1-L5

5. • L1=
𝑆𝐻
𝑆𝑂
× 𝐴𝑂 × 𝑆𝑅
OR
ASH× 𝑆𝑅
Where ASH=
𝑆𝐻
𝑆𝑂
× 𝐴𝑂
• L2= AH× 𝐴𝑅
• L3= AH× 𝑆𝑅
• L4= RSH× 𝑆𝑅
• L5= IAH× 𝑆𝑅
• SH=Standard Hour
• AH=Actual Hour
• SR=Standard Rate
• AR=Actual Rate
• SO=Standard Output
• AO=Actual Output
• RSH=Revised Standard Hour
• IAH=

6. Variable Overhead
Cost Variance
V1-V2
Variable Overhead
Spending Variance
V3-V2
Variable overhead
Efficiency Variance
V1-V3

7. • V1=
𝑆𝑉𝑂𝐻
𝑆𝑂
×AO
• V2= AVOH
• V3=
𝑆𝑉𝑂𝐻
𝑆𝐻
×AH Or
𝑆𝑉𝑂𝐻
𝑆𝑂
×AO
• SVOH= Standard Variable Overhead
• AVOH= Actual Variable Overhead
• SO= Standard Output
• AO= Actual Output
• SH=Standard Hour
• AH=Actual Hour

8. Fixed Overhead
Cost Variance
F1-F2
Fixed Overhead
Expenditure
Variance
F3-F2
Fixed Overhead
Volume Variance
F1-F3
Capacity
Variance
F5-F4
Calendar
Variance
F4-F3
Efficiency
Variance
F1-F5

9. • F1=
𝑆𝐹𝑂𝐻
𝑆𝑂
× 𝐴𝑂
• F2=AFOH
• F3=SFOH
• F4=
𝑆𝐹𝑂𝐻
𝑆𝐷
×AD
• F5=
𝑆𝐹𝑂𝐻
𝑆𝐻
×AH
• SFOH= Standard Fixed Overhead
• AFOH=Actual Fixed Overhead
• SO=Standard Output
• AO=Actual Output
• SH=Standard Hour
• AH=Actual Hour
• SD= Standard Days
• AD= Actual Days