1. Profit Variance Analysis
SHEET
Profit Variance Analysis

2. Variance Analysis
Cost Variance Analysis: - Direct Materials : - Mix Variance - Yield Variance - Direct Labor: - Variable Overhead - Fixed Overhead

3. Variance Analysis Sale Variance Analysis: - Static-budget variance
- Flexible-budget variance
- Sales-volume variance
- Sales-quantity variance
- Sales-mix variance

4. Price and Quantity Variances: Direct Materials
Cost Variance Analysis
Price and Quantity Variances: Direct Materials
AQ x AP
AQ x SP
SQ x SP
Price Variance
Quantity Variance
Total Variance
PV = (AP – SP)AQ
QV = (AQ– SQ)SP

5. Rate and Efficiency Variances: Direct Labor
Cost Variance Analysis
Rate and Efficiency Variances: Direct Labor
AH x AR
AH x SR
SH x SR
Rate
Variance
Efficiency Variance
Total Variance
RV = (AR – SR)AH
EV = (AH– SH)SR

6. Direct Materials : Mix and Yield Variances
Cost Variance Analysis
Direct Materials : Mix and Yield Variances
AQxAM x SP
AQ xSMx SP
SQxSM x SP
Mix Variance
Yield
Variance
Quantity Variance
MV = (AM – SM)xAQxSP
YV = (AQ– SQ)xSMxSP

7. Direct Labor : Mix and Yield Variances
Cost Variance Analysis
Direct Labor : Mix and Yield Variances
AHxAM x SR
AH xSMx SR
SHxSM x SR
Mix Variance
Yield
Variance
Efficiency Variance
MV = (AM – SM)xAHxSR
YV = (AH– SH)xSMxSR

8. Sales Variances Level 3: Sales-mix variance
Level 1: Static-budget variance—the difference between an actual result and the static-budgeted amount
Level 2: Flexible-budget variance—the difference between an actual result and the flexible-budgeted amount
Level 2: Sales-volume variance
Level 3: Sales-quantity variance
Market Share Variance
Market Size Variance
Level 3: Sales-mix variance

9. Flexible-Budget and Sales-Volume Variances Illustrated
P1,P2
TAQxAM x ACM
P1,P2
TAQ xAMx BCM
P1,P2
TBQxBMx
BCM
Flexible-budget Variance
Sales-volume Variance
Static-budget Variance
P1:SVV = (TAQ –TBQ)x(AM-BM)xBCM
P2:SVV = (TAQ –TBQ)x(AM-BM)xBCM
P1:FBV = (ACM – BCM)xTAQxAM
P2:FBV = (ACM – BCM)xTAQxAM

10. Sales-Mix Variance
Measures shifts between selling more or less of higher or lower profitable products

11. Sales-Quantity Variance

12. Sales-Mix and Sales–Quantity Variances Illustrated
P1,P2
TAQ xAMx BCM
P1,P2
TAQ xBMx BCM
P1,P2
TBQxBMx
BCM
Sales-mix Variance
Sales-Quantity Variance
Sales-volume Variance
P1:SMV = (AM-BM)xTAQxBCM
P2:SMV = (AM-BM)xTAQxBCM
P1:SQV = (TAQ –TBQ)xBMxBCM
P2:SQV = (TAQ –TBQ)xBMxBCM

13. Sales–Quantity: Market Share and Market Size Variance
WBCM = กำไรส่วนเกินถัวเฉลี่ยถ่วงน้ำหนักตามงบประมาณ
Market Share Variance
=(AMS – BMS)xTAQxWBCM
Market Size Variance
= (TAQ – TBQ)xBMSxWBCM

14. Sales Variances Summarized
Static Budget Variance
Flexible-Budget Variance
Sales-Volume Variance
Sales–Quantity Variance
Sales-Mix Variance
Market Share Variance
Market Size Variance