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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)
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