Standard Costing

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Parminder Singh

Parminder Singh (Querist)
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04 January 2008 any easy method of calculating Material and Labour variance

Parminder Singh

Parminder Singh (Querist)
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04 January 2008 urgent

SHIV KUMAR GUPTA

SHIV KUMAR GUPTA (Expert)
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04 January 2008 +YOUR QUERY INITSELF IS ITS REPLY.
ANY DIFFERENCE IN STANDARDS PARAMETERS AND ACTUAL DATA NOTICED AT THE END OF PERIOD TO BE MONITORED IS THE VARIANCE WHICH MAY BE PLUS OR MINUS. IT MAY QUANTITIVE AND VALUE BASED .
THANKS
S.K.GUPTA

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Ronak Shah

Ronak Shah (Expert)
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04 January 2008 Material Variance is to be calculated with formula = Standard Material Cost - Actual Material Cost.At the time of calculating Standard Material Cost, we should multiple Standard Quantity of Actual Output with Standard Price.

Labour Cost Varinace is to be calculated with formula = Standard Labour Cost - Actual Labour Cost.At the time of calculating Standard Labour Cost, we should multiple Standard Hours of Actual Output with Standard Rate.

The Material Variances Subdivided
PRICE, MIX, USAGE, SUB USAGE & Total Material Cost Variance

Labour Variance Subdivided
RATE, MIX, EFFIFICIENCY & Total Labour Cost Variance.

Hope your Query Being Resolve.

Warm Regards
Ronak Shah
(M) 9898198658

o.velavan

o.velavan (Expert)
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04 January 2008 please refer vahist and saxena book for cost accounting in which they have given wonderful formula for this.But without understanding the concept it may not be possible to apply that formula.