中央财经大学会计专业英语教程Chapter 9.pptVIP

Budgeted profit All favorable variances All adverse variances All adverse variances The variances represent the differences between the budgeted and actual profit, and so can be used to reconcile the two figures. Illustration 9-3. Relationship Between the Budgeted and Actual Profit Example 9.3 For the remainder of the analysis of the difference between the actual and budgeted profits, we can ignore the original budget. We can concentrate exclusively on the differences between the figures in the flexed budget and the actual figures. Sales Volume Variance Sales Price Variance Sales price variance is the difference between the actual sales revenue figure for the period and the sales revenue figure as shown in the flexed budget. Materials Variances Total direct materials variance: the difference between the actual direct materials cost and the direct materials cost according to the flexed budget(budgeted usage for the actual output). Direct materials usage variance Direct materials price variance Total direct materials variance The total direct materials variance is the sum of the direct materials usage variance and the price variance, and can be analyzed into those two. Illustration 9-4. Relationship Between the Total Usage and Price Variances of Direct Materials Direct materials usage variance: the difference between the actual direct quantity of direct materials used and the quantify of direct materials according to the flexed budget(budgeted usage for the actual output). The quantity is multiplied by the budgeted direct materials cost for one unit of the direct materials. Sales Price Variance Direct materials price variance: the difference between the actual cost of the direct materials used and the direct materials cost allowed(actual quantity of materials used at the budgeted direct materials cost). Sales Price Variance Labor Variances Total direct labor variance: the difference between the actual direct labor cost and the direct labor cost according to the