Standard Cost vs Actual Cost Variance Calculator
Compare standard costs with actual costs for materials and labour to calculate price, quantity, rate and efficiency variances and see where your budget went off track.
Where Did Actual Costs Differ From Standard?
Enter your standard and actual material and labour data for a production run. The calculator computes each variance and labels it favourable or unfavourable.
Standard vs Actual Cost Variance Estimator
Variance analysis explains why actual spending differs from the plan.
Understanding Variances
Key concepts in standard costing
Price Variance
(Actual price − Standard price) × Actual quantity. It shows whether you paid more or less than planned.
Quantity Variance
(Actual quantity − Standard quantity for output) × Standard price. It reveals waste or efficiency in materials.
Labour Variances
Rate variance uses actual hours; efficiency variance compares actual hours with standard hours for actual output.
Favourable Or Unfavourable
Positive cost variances are unfavourable because actual costs exceeded standard.
Variance Formulas
Standard cost accounting formulas used in this calculator.
| Variance | Formula | Positive Result | Common Cause |
|---|---|---|---|
| Material price | (AP − SP) × AQ | Unfavourable | Supplier price changes |
| Material quantity | (AQ − SQ) × SP | Unfavourable | Waste or scrap |
| Labour rate | (AR − SR) × AH | Unfavourable | Overtime or wage changes |
| Labour efficiency | (AH − SH) × SR | Unfavourable | Low productivity |
| Total variance | Actual − Standard | Unfavourable | Sum of all causes |
| Key Message | Positive = unfavourable | Negative = favourable | Investigate big gaps |
Standard Cost vs Calculator FAQ
Answers to common questions about this calculator.
A predetermined cost per unit for materials, labour and overhead used as a benchmark for budgeting and control.
When actual cost is lower than standard cost. It is not always good if quality or delivery suffer.
Price variance relates to how much you paid per unit of input, while quantity variance relates to how much input you used.
No. This calculator covers direct materials and direct labour only.