explanation the variances for materiel and labor

1. ‫المعيارية‬ ‫االنحرافات‬
ACTUAL COST – STANDARD COST = (-) or (+)
(A.C.) - (S.C.)
Variances
(-):- favorable variance (f) ‫مالئم‬
(+):- unfavorable variance (U) ‫مالئم‬ ‫غير‬
• ACTUAL COST:- ‫من‬ ‫وتتكون‬ ‫االنتاجية‬ ‫العملية‬ ‫خالل‬ ‫تحققت‬ ‫التي‬ ‫التكاليف‬ ‫تلك‬
‫مباشرة‬ ‫الغير‬ ‫الصناعية‬ ‫والتكاليف‬ ‫العمل‬ ‫و‬ ‫المواد‬
• STANDARD COST:- ‫االنتاجي‬ ‫بالعملية‬ ‫البدء‬ ‫قبل‬ ‫تحديدها‬ ‫تم‬ ‫التي‬ ‫التكاليف‬ ‫تلك‬‫ة‬
‫مباشرة‬ ‫الغير‬ ‫الصناعية‬ ‫والتكاليف‬ ‫والعمل‬ ‫المواد‬ ‫من‬ ‫وتتكون‬

2. ‫مثال‬1/‫النتاج‬ ‫الفعلية‬ ‫الكلفة‬2000‫هي‬ ‫بيبسي‬ ‫علبة‬
240000‫هي‬ ‫لها‬ ‫المعيارية‬ ‫الكلفة‬ ‫بينما‬250000
‫يلي‬ ‫كما‬ ‫االنحالاف‬ ‫فيكون‬
• AC – SC
• 240000-250000= 10000 (F) ‫مالئم‬ ‫انحراف‬
‫مثال‬2/‫النتاج‬ ‫الفعلية‬ ‫الكلفة‬50‫حجم‬ ‫اطار‬14‫هي‬ ‫نج‬1,300,000‫في‬
‫هي‬ ‫التخمينية‬ ‫الكلفة‬ ‫حين‬
1,250,000‫كاالتي‬ ‫المعياري‬ ‫االنحراف‬ ‫فيكون‬:-
• AC-SC=
• 1300000-1250000= 50000 U ‫مالئم‬ ‫غير‬ ‫انحراف‬

3. ‫عناصر‬ ‫وحسب‬ ‫انواع‬ ‫ثالثة‬ ‫الى‬ ‫االنحرافات‬ ‫تقسم‬
‫االنحراف‬ ‫عناصر‬ ‫تحديد‬ ‫اجل‬ ‫من‬ ‫التكاليف‬
‫المباشرة‬ ‫المواد‬
‫المباشر‬ ‫العمل‬
‫الصناعية‬ ‫التكاليف‬
‫مباشرة‬ ‫الغير‬

4. ‫االنحرافات‬ ‫انواع‬
Material
variance Labor
variance
Manufacturing
overhead
variance
Material variance +labor variance +M O variance = total variances

5. Material variance ‫ا‬‫المواد‬ ‫نحراف‬

6. Actual price* actual quantity- standard price * standard quantity = total material variance
(AP) * (AQ) - (SP) * (SQ) = TMV
Actual price*actual quantity- standard price*actual quantity=material price variance
(AP)*(AQ)-(SP)*(AQ)= MPV
AQ*(AP-SP)=MPV
Standard price*actual quantity-standard price*standard quantity=material quantity variance
(SP)*(AQ)-(SP)*(SQ)=MQV
SP*(AQ-SQ)= MQV

7. total material variance =Actual price* actual quantity- standard price * standard quantity
(AP) * (AQ) - (SP) * (SQ) = TMV
Ex- Simba Company’s standard materials cost per unit of
output is $10 (2 pounds*$5). During July, the company
purchased and used 3,200 pounds of materials costing
$16,192 in making 1,500 units of finished product.
Compute the total, price, and quantity materials variances.
Ens.- AP*AQ-SP*SQ=
($5.06x3200 pounds)-(5x3000 pounds)=
16192-15000= 1192 unfavorable variance
AP= $ 16192 3200 units= 5.06 $ per unit
SQ = 2 pounds x 1500 units = 3000 pounds

8. Actual price*actual quantity- standard price*actual quantity=material price variance
(AP)*(AQ)-(SP)*(AQ)= MPV
AQ*(AP-SP)=MPV
Material price variance = AQ *(AP-SP)
3200X(5.06-5)=
3200X0.06= 192 unfavorable variance

9. Standard price*actual quantity-standard price*standard quantity=material quantity variance
(SP)*(AQ)-(SP)*(SQ)=MQV
SP*(AQ-SQ)= MQV
Material quantity variance = SP * (AQ-SQ)
5X(3200-3000)=
5X200= 1000 U (‫مالئم‬ ‫غير‬)
TOTAL MATERIAL VARIANCE = PRICE VARIANCE + QUANTITY VARIANCE
192 U + 1000 U = 1192 U

10. Ex-The standard cost of Product B manufactured by MIT
Company includes three units of direct materials at $5.00 per
unit. During June, 29,000 units of direct materials are
purchased at a cost of $4.70 per unit, and 29,000 units of
direct materials are used to produce 9,500 units of Product B.
Instructions
(a) Compute the total materials variance and the price and
quantity variances.
(b) Repeat (a), assuming the purchase price is $5.15 and the
quantity purchased and used is 28,000 units.

11. A-
total material variance = AQ*AP-SQ*SP
SQ= 3X9500=28500 units
29000X4.70- 28500X5=
136300-142500=6200 F ‫مالئم‬
Material price variance = AQ*(AP-SP)
29000X(4.70-5)= 8700 F ‫مالئم‬
Material quantity variance = SP * (AQ-SQ)
$5 X (29000-28500)= 2500 U ‫مالئم‬ ‫غير‬
Total material variance = price variance + quantity variance
8700 f+ (2500 u) = 6200 f

12. B-
total material variance = AQ*AP-SQ*SP
28000X5.15- 28500X5=
144200-142500=1700 u ‫مالئم‬ ‫غير‬
Material price variance = AQ*(AP-SP)
28000X(5.15-5)=4200 u ‫مالئم‬ ‫غير‬
Material quantity variance = SP * (AQ-SQ)
$5 X (28000-28500)= 2500 F ‫مالئم‬
Total material variance = price variance + quantity variance
(4200 U)+ 2500 F = 1700 U

13. ‫االسئلة‬
•‫المعيارية؟‬ ‫االنحرافات‬ ‫ماهي‬
•‫؟‬ ‫المعيارية‬ ‫االنحرافات‬ ‫احتساب‬ ‫يتم‬ ‫كيف‬
•‫انحرافات‬ ‫ثالث‬ ‫الى‬ ‫قسمت‬ ‫ولماذا‬ ‫االنحرافات؟‬ ‫انواع‬ ‫هي‬ ‫ما‬‫؟‬
•‫المواد‬ ‫انحرافات‬ ‫احتساب‬ ‫قوانين‬ ‫اذكر‬.
Thank you

14. Labor variance ‫العمل‬ ‫انحراف‬
Actual hours*
actual rate
AH*AR
ACTUAL HOUR*
STANDARD RATE
AH*SR
Standard hours *
standard rate
SH* SR
TOTAL LABOR
VARIANCE
LABOR RATE
VARIANCE
LABOR HOURS
VARIANCE

15. TOTAL LABOR VARIANCE= actual hours*actual rate –standard hours * standard rate
=AH * AR - SH* SR
LABOR PATE VARIANCE = actual hours * actual rate – actual hours * standard rate
=AH* AR -AH * SR
= AH* (AR-SR)
Labor hours variance = actual hours * standard rate – standard hours * standard rate
=AH* SR – SH *SR
= SR*( AH-SH)

16. Ex.-Hartley Company’s standard labor
cost per unit of output is $22 (2 hours*
$11per hour). During August, the
company incurs 2,100 hours of direct
labor at an hourly cost of $10.80 per
hour in making 1,000 units of finished
product.
Compute the total, price, and quantity
labor variances.

17. TOTAL LABOR VARIANCE= actual hours*actual rate –standard hours * standard rate
TLV= AH * AR - SH* SR
AH= 2100 hrs.
AR=10.80 $
SH= 2hrs. X 1000 units = 2000 hrs.
SR= 11 $
TLV= 2100 X 10.80 – 2000 X 11=
22680- 22000= 680 U

18. Labor price variance=AH*(AR-SR)
2100X(10.8-11) =
2100X(0.2) = 420 F ‫مالئم‬
Labor hours variance= SR*(AH-SH)
11X(2100-2000)=
11X100= 1100 U ‫مالئم‬ ‫غير‬
TOTAL LABOR VARIANCE = RATE VARIANCE + HOURS VARIANCE
(420 F) + 1100 U = 680 U

19. Ex.-Lewis Company’s standard labor cost of
producing one unit of Product DD is 4 hours at
the rate of $12.00 per hour. During August,
40,600 hours of labor are incurred
at a cost of $12.15 per hour to produce 10,000
units of Product DD.
Instructions
(a) Compute the total labor variance.
(b) Compute the labor price and quantity
variances.
(c) Repeat (b), assuming the standard is 4.1
hours of direct labor at $12.25 per hour.

20. A-Total Labor variance = AH*AR-SH*SR
AH=40600 HRS.
AR=12.15 $
SH= 4 hrs. X10000 units= 40000 hrs.
SP= 12 $
TMV= 40600X12.15-40000X12=
493290-480000= 13290 U ‫مالئم‬ ‫غير‬

21. B-Labor rate variance = AH*(AR-SR)
40600X(12.15-12)=
40600X.15= 6090 U ‫مالئم‬ ‫غير‬
Labor hour variance= SR*(AH-SH)
12X(40600-40000)=
12X600= 7200 U ‫مالئم‬ ‫غير‬
Total labor variance = rate variance + hours variance
6090 U + 7200 U =13290 U

22. C- Total labor variance =AH*AR-SH*SR
AH = 40600 hrs.
AR- 12.15$
SH=4.10X10000= 41000 hrs.
SR= 12.25 $
40600x12.15-41000x12.25=
493290-502250= 8960 F ‫مالئم‬ ‫انحراف‬

23. LABOR PRICE VARIANCE= AH*(AR-SR)
40600X(12.15-12.25)=
40600X(0.10)= 4060 F
Labor hours variance = SR*(AH-SH)
12.25X(40600-41000) =
12.25X(400)=4900 F
TOTAL LABOR VARIANCE = PATE VARIANCE + HOURS VARIANCE
4060 F + 4900 F = 8960 F

24. 1-‫العمل‬ ‫انحراف‬ ‫احتساب‬ ‫يتم‬ ‫كيف‬
2-‫العمل‬ ‫انحراف‬ ‫ينقسم‬ ‫ماذا‬ ‫الى‬
3-‫االجر‬ ‫معدل‬ ‫انحاف‬ ‫احتساب‬ ‫يتم‬ ‫كيف‬
4-‫العمل‬ ‫ساعات‬ ‫انحراف‬ ‫احتساب‬ ‫يتم‬ ‫كيف‬
5-‫مالئم‬ ‫غير‬ ‫العمل‬ ‫ساعات‬ ‫انحراف‬ ‫كان‬ ‫اذا‬ ‫لك‬ ‫يعني‬ ‫ماذا‬
Thank you