standard cost and balanced scorecard

actual overhead =

variable + fixed overhead

actual cost =

direct materials + direct labor + variable overhead + fixed overhead

Labor price variance (LPV) =

(AH * AR) - (AH * SR)

total labor variance (TLV) =

(AH * AR) - (SH * SR)

Labor quantity variance (LQV) =

(AH * SR) - (SH * SR)

total material variance (TMV) =

(AQ * AP) - (SQ * SP)

material quantity variance (MQV) =

(AQ * SP) - (SQ * SP)

Total labor variance (shortcut method) =

Labor price variance - labor quantity variance (LPV-LQV)

TMV (short cut method) =

MPV + MQV

Materials Price Variance (MPV) =

[Actual Quantity x Actual Price] - [Actual Quantity * Standard price] (AQ)(AP) - (AQ)(SP)

total variance =

actual cost - standard cost

favorable variance =

actual cost < standard cost

unfavorable variance =

actual cost > standard cost

standard predetermined overhead rate =

budgeted overhead / expected standard activity index

Total overhead variance

is the difference between actual overhead costs and overhead costs applied to work done.

standard direct material cost =

standard direct material price per pound * standard direct materials quantity per unit

standard quantity cost =

standard quantity * standard price

total overhead variance =

actual overhead - overhead applied

standard direct labor cost =

Direct labor price standard * direct labor quantity standard

standard manufacturing overhead rate =

overhead rate per direct hour * required direct labor hours

overhead applied =

predetermined overhead rate * SH note: SH = hrs * units produced

direct materials price standard

the cost per unit of direct materials that should be incurred; includes: receiving, storing, and handling costs

variances are?

the differences between total and actual cost and total standard cost

direct materials quantity standard

the quantity or direct materials that should be used per unit of finished goods

direct labor price standard or direct labor rate standard

the rate per hour that should be incurred for the direct labor

the total standard cost per unit is?

the sum of the standard cost of direct materials, direct labor, and manufacturing over head

direct labor quantity standard or direct labor efficiency

the time that should be required to make one unit of the product