Standard Costing
This query is : Resolved
Parminder Singh
(Querist)
04 January 2008
any easy method of calculating Material and Labour variance
Parminder Singh
(Querist)
04 January 2008
urgent
SHIV KUMAR GUPTA
(Expert)
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
Office Address:
KAMAL ENGINEERING CORPORATION
[UNIT OF KEC INDUSTRIES LTD]
E-MAIL :
kamal@kecindustries.com
kecindia@gmail.com
Delhi Office: 616, Antriksh Bhawan,22 Kasturba Gandhi Marg, New Delhi,
INDIA-110001
Phone : 91-11-23351365, 23723158 Fax : 91-11-23721656, 23351369
Residence Address:
154-F, GHANDHI DHAM
NEAR BUS STAND
JAGADHRI-135003
E-mail:
skgupta_b@sify.com
shivkamaljag@hotmail.com
Phone Resi:01732-314095
MOBILE:
09896627564 [Haryana ]
09810467564 [DEHLI]
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
Office Address:
KAMAL ENGINEERING CORPORATION
[UNIT OF KEC INDUSTRIES LTD]
E-MAIL :
kamal@kecindustries.com
kecindia@gmail.com
Delhi Office: 616, Antriksh Bhawan,22 Kasturba Gandhi Marg, New Delhi,
INDIA-110001
Phone : 91-11-23351365, 23723158 Fax : 91-11-23721656, 23351369
Residence Address:
154-F, GHANDHI DHAM
NEAR BUS STAND
JAGADHRI-135003
E-mail:
skgupta_b@sify.com
shivkamaljag@hotmail.com
Phone Resi:01732-314095
MOBILE:
09896627564 [Haryana ]
09810467564 [DEHLI]
Ronak Shah
(Expert)
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
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
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.
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