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Variance Analysis Template: Strictly Confidential

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Aditi SIngh
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166 views4 pages

Variance Analysis Template: Strictly Confidential

Uploaded by

Aditi SIngh
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
Download as xlsx, pdf, or txt
Download as xlsx, pdf, or txt
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Variance Analysis Template Strictly Confidential

Notes
This Excel model is for educational purposes only and should not be used for any other reason.
All content is Copyright material of CFI Education Inc.
https://corporatefinanceinstitute.com/

© 2019 CFI Education Inc.


All rights reserved.  The contents of this publication, including but not limited to all written material, content layout, images, formulas, and code, are protected under international copyright and trademark laws.  
No part of this publication may be modified, manipulated, reproduced, distributed, or transmitted in any form by any means, including photocopying, recording, or other electronic or mechanical methods,
© Corporate Finance Institute®. All rights reserved.
Variance Analysis Example

Standard Production Cost (per gadget) Quantity Unit Cost


Direct Materials (pieces) 6 $0.50
Direct Labor (hrs) 1.3 $8
Variable Manufacturing Overhead (hrs) 1.3 $4
Fixed Manufacturing Overhead (hrs) 1.3 $6

Actual Gadget Production 3,000


Fixed Overhead Expense Budget $24,180

Actual Costs Quantity Cost


Direct Materials (pieces) 25,000 $0.48 (per piece)
Direct Labor (hrs) 4,000 $36,000
Variable Manufacturing Overhead (hrs) $17,000
Fixed Manufacturing Overhead (hrs) $25,000

Materials Variance
Actual Quantity 25,000
Actual Price $0.48
Standard Quantity Allowed 18,000
Standard Price $0.50

Price Variance $500 Favorable


Quantity Variance -$3,500 Unfavorable
Overall Materials Variance -$3,000 Unfavorable
This file is for educational purposes only. E&

Corporate Finance Institute®


https://corporatefinanceinstitute.com/

Labor Variance
Actual Hours 4,000
Actual Rate $9
Standard Hours Allowed 3,900
Standard Rate $8

Rate Variance -$4,000 Unfavorable


Efficiency Variance -$800 Unfavorable
Overall Labor Variance -$4,800 Unfavorable
cational purposes only. E&OE

ce Institute®
efinanceinstitute.com/

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