The consumption difference reflects the cost difference caused by the inconsistency between the actual consumption of direct materials, direct labor and variable manufacturing expenses and the standard consumption.

The calculation formula is as follows:

Dose difference = standard price × (actual dose-standard dose).

The price difference reflects the cost difference caused by the inconsistency between the actual price level of direct materials, direct labor and variable manufacturing expenses and the standard price level. The calculation formula is: price difference = (actual price-standard price) × actual consumption.

Extended data:

1. Standard cost of direct materials = material consumption per unit product × unit price of raw materials;

2. Direct labor standard cost = direct labor hours per unit product × hourly wage rate;

3. Standard cost of manufacturing expenses = direct labor hours per unit product × distribution rate of manufacturing expenses per hour.

Cost difference refers to the difference between the actual cost of producing a certain number of products and the relevant standard cost in a certain period of time. Dose difference-price difference; Pure difference-mixed difference; Advantageous differences-unfavorable differences; Controllable differences-uncontrollable differences. Dose difference is also called quantity difference, and price difference is also called price difference.

Quantity difference = standard price × (actual dosage-standard dosage); Price difference = (actual price-standard price) × actual consumption

Quantity difference+price difference = standard price × (actual consumption-standard consumption)+(actual price-standard price) × actual consumption = standard price × standard consumption+actual price × actual consumption-standard price × actual consumption-standard price × standard consumption = actual cost-standard cost.

Cost variance of direct materials:

(1) Quantity difference = (actual output × actual consumption of unit product-actual output × standard consumption of unit product) × standard price of unit consumption.

(2) Price difference = (actual unit price-standard unit price) × actual output× actual consumption per unit product.

Cost variance of direct labor:

(1) Quantity difference = (actual output × actual labor hours per unit product-actual output × standard labor hours per unit product) × standard wage rate.

(2) Price difference = actual output × actual working hours per unit product × (actual wage rate-standard wage rate)

Cost variance of variable manufacturing expenses:

(1) Quantity difference (variable cost efficiency difference) = (actual output × actual working hours per unit product-actual output × standard working hours per unit product) × standard distribution rate of variable manufacturing cost.

(2) Price difference (variable cost difference) = actual output × actual working hours per unit product × (actual distribution rate of variable cost-standard distribution rate of variable cost)