| Variable overhead rate variance | The difference between the actual variable overhead cost incurred during a period and the standard cost that should have been incurred based on the actual activity of the period. |
| Variable overhead efficiency variance | The difference between the actual level of activity (direct labor-hours, machine-hours, or some other base) and the standard activity allowed, multiplied by the variable part of the predetermined overhead rate. |
| Standard rate per hour | The labor rate that should be incurred per hour of labor time, including employment taxes and fringe benefits. |
| Standard quantity per unit | The amount of an input that should be required to complete a single unit of product, including allowances for normal waste, spoilage, rejects, and other normal inefficiencies. |
| Standard quantity allowed | The amount of an input that should have been used to complete the period’s actual output. It is computed by multiplying the actual number of units produced by the standard quantity per unit. |
| Standard price per unit | The price that should be paid for an input. |
| Standard hours per unit | The amount of direct labor time that should be required to complete a single unit of product, including allowances for breaks, machine downtime, cleanup, rejects, and other normal inefficiencies. |
| Standard hours allowed | The time that should have been taken to complete the period’s output. It is computed by multiplying the actual number of units produced by the standard hours per unit. |
| Standard cost per unit | The standard quantity allowed of an input per unit of a specific product, multiplied by the standard price of the input |
| Standard cost card | A detailed listing of the standard amounts of inputs and their costs that are required to produce one unit of a specific product. |
| Quantity variance | A variance that is computed by taking the difference between the actual quantity of the input used and the amount of the input that should have been used for the actual level of output and multiplying the result by the standard price of the input. |
| Price variance | A variance that is computed by taking the difference between the actual price and the standard price and multiplying the result by the actual quantity of the input. |
| Labor efficiency variance | The difference between the actual hours taken to complete a task and the standard hours allowed for the actual output, multiplied by the standard hourly labor rate. |
| Materials quantity variance | The difference between the actual quantity of materials used in production and the standard quantity allowed for the actual output, multiplied by the standard price per unit of materials. |
| Materials price variance | The difference between the actual unit price paid for an item and the standard price, multiplied by the quantity purchased |
| Labor rate variance | The difference between the actual hourly labor rate and the standard rate, multiplied by the number of hours worked during the period |
