2.  Total Quantity X price  Total Quantity =  good units  X  Standard Qty per unit

3.  Total Hours X Rate per hr  Good units X hours per unit = total hrs

4.  Quantity Variance  Price Variance  Favorable variance is positive number  Unfavorable variance is a negative num.

5.  Difference in Quantity X Actual Price  Difference in Quantity › Standard Quantity – Actual Quantity  Actual Price is Total Cost/Quantity

6.  Difference in Price X Standard Quantity

8.  Lower Price – Lower Quality- more quantity – more hours  Higher price-higher quality-less quantity- less hours  Higher skilled labor-requires less hours- higher rate  Lower skill labor-requires more hours- lower rate

9.  Quantity Discount  Quality better or worse  Standard do not reflect current changes

10.  Efficiency (Hours) Variance  Rate Variances

11.  Difference in hours x actual rate  Difference = Standard hour from Actual Hours

12.  Difference in rate X Standard hours