Standard Cost Variance Calculator (Material and Labour Price, Usage and Efficiency)

What this tool does

Standard costing sets what a unit of output should cost, then explains the gap to what it really cost. Each cost splits into a price effect (paid more or less per unit, measured on the actual quantity) and a quantity effect (used more or less than allowed, measured at the standard price), and the two always add up to the total. Positive figures here mean actual cost above standard, called adverse; negative ones are favourable. A variance only says where to look, not why: a cheap supplier can cause a favourable price variance and an adverse usage variance at once. Here the quantity bought is taken to equal the quantity used.

Formula

price variance = (actual price − std price) × actual qty · usage variance = (actual qty − std qty) × std price

Variables

Worked example

Limitations

• The tool works with whatever currency you use for the inputs; it does not convert between currencies.
• The default values are typical reference figures, not measurements of your situation. Replace them with your own data whenever you have it.