The analysis formula of cost variance, how to calculate the cost variance rate

1) Direct material cost analysis.

Effect of changes in material consumption (quantity difference) = (actual quantity - planned quantity) plan**;

Effect of Material ** Change (Spread) = (Actual** - Planned**) Actual Quantity.

2) Direct Labor Cost Analysis:

Effect of changes in man-hours consumed per unit of product (volume difference) = (actual man-hours - planned man-hours) Planned wage cost per hour;

Impact of change in hourly wage cost (spread) = (actual hourly wage cost - planned hourly wage cost) Actual working hours.

Extension: Cost difference refers to the difference between the actual cost of producing a certain number of products in a given period of time and the associated standard cost under the standard cost system. Cost differences include usage differences and ** differences, net differences and mixed differences, favorable differences and unfavorable differences, controllable differences and uncontrollable differences, etc.

Theoretically, any type of difference needs to be calculated on the assumption that when one factor changes, other factors are fixed on a certain basis. Fixing other factors on the basis of the criterion, the calculated difference is a pure difference. The difference that is the opposite of pure difference is mixed difference.

Mixed differences, also known as joint differences, refer to the differences left over from the total differences after deducting all the pure differences.

Favorable variance refers to the difference in savings due to the actual cost being lower than the standard cost. Adverse variances are defined as overspending differences due to actual costs being higher than standard costs. But the pros and cons here are relative, and it is not that the greater the difference in advantages, the better.

For example, you can't blindly pursue a favorable difference in cost at the expense of quality. Controllable differences refer to differences that are formed in connection with the degree of subjective effort, also known as subjective differences. It's cost control.

The point.

Cost reduction analysis of comparable products.

Reduction for comparable products = Total cost of the year to date for the comparable product based on the actual average unit cost of the previous year - Total actual cost to date this year.

Reduction rate of comparable products = reduction of comparable products The total cumulative cost of comparable products for the current year based on the actual average unit cost of the previous year.

How to calculate the <> cost variance rate:

Cost variance rate = (opening cost variance + current month warehousing cost variance) round branch (opening plan cost + current month's warehousing plan cost) 100%.

The variance rate is the ratio of the variance to the planned cost, which is usually expressed as a percentage. Cost variance is the difference between actual and planned costs. A positive number indicates the overrun differential rate, and a negative number indicates the savings differential rate.

How to calculate the <> cost variance rate:

Cost difference rate = (the difference between the beginning of the period and the cost of warehousing + the difference of the warehousing cost of the month) (the initial planned cost of the lead in the current period + the planned cost of the current month) 100%.

The cost variance rate is the ratio of the cost variance amount to the planned cost, which is usually expressed as a percentage. The cost variance is the difference between the actual cost and the planned cost. A positive number indicates the overrun differential rate, and a negative number indicates the savings differential rate.

Cost deviation calculation formula: cost deviation (CV) cavity pants = earned value.

EV) - Actual Cost (AC) (in Earned Value).

Cost deviation is the difference between the budgeted cost of an activity and the actual cost of that activity.

When the CV is positive, it means that the actual labor (or cost) consumed is lower than the budgeted value, that is, there is a surplus or high efficiency; When CV is equal to zero, it represents the actual labor (or cost) consumed and other budgeted values. When the CV is negative, it means that the actual labor (or cost) consumed exceeds the budget value or is overspent.

Cost deviations are divided into local cost deviations and cumulative cost deviations.

1. Local cost deviations include monthly (or weekly, daily, etc.) of the project.

Accounting cost deviation, professional accounting cost deviation and sub-item operation cost deviation, etc.

2. The cumulative cost deviation refers to the difference between the approved budgeted cost of the completed work and the actual total cost of the completed project at a certain point in time.

To analyze the causes of cost deviations, a combination of qualitative and quantitative methods should be adopted. <>

Cost deviations are divided into local cost deviations and cumulative cost deviations.

1. Local cost deviations include monthly (or weekly, daily, etc.) accounting cost deviations of the project, professional accounting cost deviations and sub-project operation cost deviations.

2. The cumulative cost deviation refers to the difference between the actual total closing cost of the completed project and the corresponding planned total cost at a certain point in time.

To analyze the causes of cost deviations, a combination of qualitative and quantitative methods should be adopted.

Measurement method. Although the calculation relationship of deviation analysis is relatively simple, deviation analysis to accurately measure jobs is not easy and becomes the key to the successful application of deviation analysis. This is due to the fact that on the one hand, the content of the project is diverse, and the measurement of deviation analysis should be carefully designed according to the content of the activity.

The formula for calculating the cost variance is as follows: Total Cost Variance = Actual Cost under Actual Production - Standard Cost under Actual Production Volume.

Direct Material Cost Variance Analysis: Direct Material Cost Variance = Actual Cost under Actual Output - Standard Cost under Actual Output. Direct Labor Cost Variance: Direct Labor Cost Variance = Actual Cost - Standard Cost under Actual Output.

The formula is transformed to:

Actual Cost = Planned Cost + Material Cost Variance.

In this equation, the material cost difference is added if it is a positive number and subtracted if it is a negative number.

Material Cost Variance Rate = (Balance Material Cost Difference at the Beginning of the Month + Revenue Material Cost Variance of the Month) (Planned Cost of Materials Balance at the Beginning of the Month + Planned Cost of Revenue Materials of the Month) * 100%.

The variance rate formula is as follows:

Material cost variance rate = (cost difference of materials in the opening balance + cost difference of materials in the current period) (planned cost of materials in the opening balance + planned cost of materials in the current period) 100%.

When the material is planned costing, the revenue, issuance and balance of the material are valued according to the planned cost. At the end of the month, the difference in the cost of the materials issued in the current month is calculated and apportioned, and the cost of the relevant assets or the profit or loss for the current period is included according to the use of the materials received, so that the planned cost of the materials issued is adjusted to the actual cost. Scattered acres.

Raw materials are planned costing, which is essentially actual cost, but the actual cost is divided into planned cost and material cost difference.

Material cost variances are also known as "material variances". Refers to the difference between the actual cost of the material and the planned cost.

When the daily sending and receiving of materials is priced according to the plan, you need to set up the Material Cost Variance account as the adjustment account for the material account. The actual cost of the registered materials of the account is greater than the overrun of the planned cost, and the actual cost of the registered materials of the credit is less than the planned cost of the project. The difference in the cost of issuing the materials to be borne shall be transferred from the credit of the purpose of the section to the respective relevant production expense accounts; Overruns are carried forward in blue, and savings are carried forward in red.

Material cost variances"The detailed classification accounting of the account can be carried out by material category or by the combination of all materials. The detailed classification accounting according to the material category can make the calculation of the material cost in the cost more correct, but it is necessary to set up more detailed ledgers of material cost differences accordingly to increase the accounting workload.

If all materials are combined for accounting, the accounting work can be simplified, but the correctness of the cost calculation will be affected. Therefore, when deciding the detailed classification accounting of material cost differences, it is necessary to consider not only the correctness of cost calculation, but also the possibility of manpower in accounting. The allocation of material cost variances is calculated based on the planned cost of the materials issued and the material cost variance allocation rate.

The following steps can be taken for the analysis of cost variances:

Determine baseline cost: Pick a specific period or standard to base against, such as budgeted, historical, or standard cost. This will serve as a benchmark against your actual costs.

Calculate Cost Variance: Calculate the cost variance by comparing the actual cost to the base cost. The cost variance is the difference between the actual cost and the baseline cost and can be used to evaluate the cost performance compared to the baseline.

Analyze the causes of cost variances: Identify the specific causes of cost variances. This may involve analyzing the impact of different factors, such as material costs, labor costs, transportation costs, etc.

You can conduct a detailed investigation and discussion by comparing actual and budgeted data to determine the cost variance.

Take corrective action: Take corrective action based on the results of the cost variance analysis. This could include improving production processes, optimizing resource utilization, reducing waste, renegotiating contracts, and more.

It is important to note that when conducting a cost variance analysis, it is important to pay attention to the magnitude and importance of the cost variance. Focus on and prioritize key cost differences that have a significant impact on business performance and cost-effectiveness.

In addition, cost variance analysis can also be used in conjunction with other metrics and analytical methods, such as cost-benefit analysis, performance evaluation, etc., to obtain a more comprehensive view of cost management and control. <>

Answer: The standard cost difference analysis includes: (1) the general formula for the calculation of variable cost difference in variable cost difference analysis Price difference = actual consumption (actual ** - standard **) = q real (p real - p standard) quantity difference = (actual quantity - standard consumption) standard ** = (q real - q standard) p standard 1

Analysis of direct material cost difference Direct material cost difference = actual cost under actual output - standard cost under actual output (1) Direct material ** difference = (actual ** standard **) Actual consumption (2) Direct material blind Li Xian quantity difference = (actual amount Standard consumption under actual beam production volume) Standard **2, direct labor cost difference direct labor cost difference = actual total labor cost - standard labor cost under actual output (1) Price difference direct labor wage rate difference = (actual wage rate Wage rate standard) Actual labor hours (2) Quantity difference direct labor efficiency difference = (actual labor hours Standard labor hours under the actual output of rubber transportation) Wage rate standard grinding beat 3, variable manufacturing cost difference (1) Price difference change manufacturing cost difference = actual working hours (Actual distribution rate of variable manufacturing costs, variable manufacturing cost standard distribution rate) (2) Quantity difference change manufacturing cost efficiency difference = (actual working hours under actual output.)

The cost difference generally includes the difference between the planned cost and the actual cost, the difference between the actual cost of the current period and the actual cost of the previous period, the difference between the actual cost of the current period and the actual cost of the same period last year, the difference between the actual cost of the current period and the historical advanced cost level of the enterprise and the advanced cost level of the same industry. The analysis process of taking measures to reduce production costs according to the differences caused by different causes. The methods of cost difference analysis include very Kaiyin multi-grinding only (such as comparative analysis, ratio analysis, factor analysis, etc.).

Material Cost Variance = Actual Cost - Planned Surge Cost.

Material Cost Variance Rate = Material Cost Variance Planned Cost.

For example, the inventory of the enterprise is calculated according to the planned cost, the inventory quantity of material A at the beginning of the period is 50 tons, the planned cost of the single orange position is 200 tons, the debit balance of the material cost difference account is 100 yuan, and 50 tons of material A is purchased at 210 yuan tons this month, and the difference rate of material cost of A in this period is ( ).

The difference in the cost of material A = [100 + (210-200) x 50] [50 + 50) x 200] x 100% = 3%.