So first, you need to work out your standard costs.

36/3 = £12 per standard kg 1.5 x 300 = 450 standard hours 22.5/1.5 = £15 per standard hour

Then just use the calculations to get the variance.

So for materials usage: (300 x 3kg x 12) - (960 x 12) = -720 (adverse) labour rate variance: (1.5 x 300 x £15 ) - 7140 = -390 (adverse) Variable overhead efficiency variance: (10.50 x 450) - (10.5 x 420) = 315 (favourable)

## Comments

7966So first, you need to work out your standard costs.

36/3 = £12 per standard kg

1.5 x 300 = 450 standard hours

22.5/1.5 = £15 per standard hour

Then just use the calculations to get the variance.

So for materials usage: (300 x 3kg x 12) - (960 x 12) = -720 (adverse)

labour rate variance: (1.5 x 300 x £15 ) - 7140 = -390 (adverse)

Variable overhead efficiency variance: (10.50 x 450) - (10.5 x 420) = 315 (favourable)

667966450 x 7 = 3150

420 x 7 = 2940

3150 - 2940 = 210 favourable

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