[wp_ad_camp_1]

__Control Ratios:__

Activity Ratio = Standard Hours for Actual Production ÷ Budgeted Hours x 100

Capacity Ratio = Actual Hours Worked ÷ Budgeted Hours x 100

Efficiency Ratio = Standard Hours for Actual Production ÷ Actual Hours Worked x 100

**STANDARD COSTING**

__Direct Material Variances:__

Direct Material Cost Variance (DMCV) = (Standard cost for actual output – Actual cost)

Direct Material Price Variance (DMPV) = Actual Quantity x (Standard Price – Actual Price)

Direct Material Quantity or Usage Variance (DMUV) = Standard Price x (Standard Quantity for Actual Output – Actual quantity)

Direct Material Mix Variance (DMMV) = Standard Price x (Revised Standard quantity – Actual quantity)

Revised usage variance = Standard price x (Standard quantity for actual output – Revised standard Qty)

Direct Material Yield Variance = Standard Cost per unit x (Standard production for actual mix – Actual production)

[wp_ad_camp_2]