Thursday, November 6, 2014

Standard Costing Formulas (Management Accounting)

Standard Costing:

Ø Standard Costing of Material:

1.     Material Total Variance
2.     Material Price Variance
3.     Material Usage Variance

Calculation of Material Variance:
1.     
Material Total Variance
Standard Material cost for actual output…………………..XXXX
Actual Material Cost ………………………………………XXXX
F/A              ………………………………………………..XXXX
 
2.     Material Price Variance
Standard Material cost for Actual quantity ……………....XXXX
Actual Material Cost ……………………………………...XXXX
F/A ………………………………………….…………….XXXX

3.     Material Usage Variance
Standard Material quantity for actual output ……………XXXX Kg
Actual Material quantity ………………………………...XXXX Kg
F/A ……………………………………………………….XXXX Kg

Ø Standard Costing for Labour
1.     Labour total Variance
2.     Labour Rate Variance
3.     Labour Efficiency Variance

 Calculation of Labour Variance:
1.     
Labour Total Variance
Standard Labour cost for actual output…..………………..XXXX
Actual Labour Cost ………………………………..………XXXX
F/A              ………………………………………………..XXXX

2.     Labour Rate Variance
Standard labour cost for Actual Hours ... ……..,………....XXXX
Actual Labour Cost ……..………………………………...XXXX
F/A ………………………………………….…………….XXXX

3.     Labour Efficiency Variance
Standard Labour Hours for actual output ….……………XXXX
Actual Labour Hours …. ………………………………...XXXX
F/A ……………………………………………………….XXXX

Ø Standard Costing for Variable FOH
1.     Variable FOH Total Variance
2.     Variable FOH Expenditure Variance
3.     Variable FOH Efficiency Variance
4.     Variable FOH Total Variance
1.     Variable FOH Total Variance
Standard variable FOH for actual output ………………….XXXX
Actual Variable FOH ………………………………………XXXX
F/A …………………………………………………………XXXX

2.     Variable FOH Expenditure Variance
Standard FOH for Actual Hours …………………….…….XXXX
Actual Variable FOH ……………………………….……..XXXX
F/A ………………………………………………….……..XXXX

3.     Variable FOH Efficiency Variance
Standard Labour Hours For Actual output ………………XXXX
Actual Labour Hours ……………………………….…….XXXX
F/A …………………………………………………..……XXXX


Ø Standard Costing for Fixed FOH
1.     Fixed FOH Total Variance
2.     Fixed FOH expenditure Variance
3.     Fixed FOH Volume Variance
4.     Fixed FOH Volume Capacity Variance
5.     Fixed FOH Volume Efficiency Variance
Calculation of Fixed FOH Variance:
1.     Fixed FOH Total Variance
Fixed FOH absorbed for Actual output ………………………XXXX
Actual Fixed FOH …………………………………………….XXXX
F/A ……………………………………………………………XXXX

2.     Fixed FOH Expenditure Variance
Budgeted Fixed FOH ………………………………………….XXXX
Actual Fixed FOH ……………………………………………..XXXX
F/A …………………………………………………………….XXXX

3.     Fixed FOH Volume Variance
Budgeted Production Volume………………………………...XXXX
Actual Production  Volume ………………………………….XXXX
F/A ……………………………………………………………XXXX

4.     Fixed FOH volume Capacity Variance
Budgeted labour hours ……………………………………….XXXX
Actual Labour Hours …………………………………………XXXX
F/A ……………………………………………………………XXXX
5.     Fixed FOH Volume Efficiency Variance
Standard Labour Hours for Actual Output ……………………XXXX
Actual Labour Hours …………………………………………..XXXX
F/A ……………………………………………………………..XXXX


Operating Statement
Budgeted Sales ………………………………………………………. XXXX
Budgeted cost of goods sold ………………………………………… XXXX
Budgeted gross profit ……………………………………………….. XXXX
Variances:                                         F                          A
Sales price variance………….        xxxx                    xxxx
Sales volume variance ………        xxxx                    xxxx
Material price variance………        xxxx                    xxxx
Material usage variance ….....         xxxx                    xxxx
Labour rate variance …..........         xxxx                    xxxx
Labour efficiency variance….         xxxx                    xxxx
Labour idol variance ………..         xxxx                    xxxx
V. FOH expenditure variance          xxxx                    xxxx
V. FOH efficiency variance...          xxxx                    xxxx
F. FOH expenditure variance           xxxx                    xxxx
F.FOH efficiency variance….          xxxx                    xxxx                  XXXX       
Actual gross profit ………………………………………………….. XXXX
Less: selling & admin Expenses …………………………………… XXXX

Actual Net Profit …………………………………………………… XXXX

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