Cost Variance Report

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Direct labour variance - Direct labour cost variance is the difference between the standard cost for actual production and the actual cost in production. There are two kinds of labour variances.

Direct material price variance - In variance analysis (accounting) direct material price variance is the difference between the standard cost and the actual cost for the actual quantity of material used or purchased. It is one of the two components (the other is direct material usage variance) of direct material total variance.

Direct material total variance - In variance analysis (accounting) direct material total variance is the difference between the actual cost of actual number of units produced and its budgeted cost in terms of material. Direct material total variance can be divided into two components:

Direct material usage variance - In variance analysis (accounting) direct material usage variance is the difference between the standard quantity of materials that should have been used for the number of units actually produced, and the actual quantity of materials used, valued at the standard cost per unit of material. It is one of the two components (the other is direct material price variance) of direct material total variance.

costvariancereport

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