📊Variance Analysis
Price Variance (Materials or Labor)
(Actual Price - Standard Price) × Actual Quantity = Price Variance
What It Means
Did you pay more or less than expected per unit?
✓Favorable (F): Actual < Standard | Unfavorable (U): Actual > Standard
Related Formulas
Quantity Variance (Materials or Labor)
(Actual Quantity - Standard Quantity) × Standard Price = Quantity Variance
Direct Materials Price Variance
(Actual Price - Standard Price) × Actual Quantity Purchased = DM Price Variance
Direct Materials Quantity Variance
(Actual Qty Used - Standard Qty Allowed) × Standard Price = DM Quantity Variance
Direct Labor Rate Variance
(Actual Rate - Standard Rate) × Actual Hours = DL Rate Variance
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