Absorption Costing: Profit Reconciliation Statement

Budgeted profit (Budgeted units x budgeted profit) x

Sales variance

Sales price variance x F or (A)

Sales profit volume variance x F or (A)

X F or (A)

Actual sales minus the standard full cost of sales x

Cost variance F A

$ $

Direct material price x x

Direct material usage x x

Direct labour rate x x

Direct labour usage/efficiency x x

Variable O/H expenditure x x

Variable O/H efficiency x x

Fixed O/H expenditure x x

Fixed O/H capacity x x

Fixed O/H efficiency x x

_____________

Total cost variance F A __

x F x (A)

__________

Actual Profit __________

Marginal Costing: Profit Reconciliation Statement

Budgeted profit X

Add: Budgeted fixed costs X

___

Budgeted contribution x

Sales variances

Sales price variance x F or (A)

Sales profit volume variance x F or (A)

X F or (A)

Actual sales minus the marginal full cost of sales x

Cost variance F A

$ $

Direct material price x x

Direct material usage x x

Direct labour rate x x

Direct labour usage/efficiency x x

Variable O/H expenditure x x

Variable O/H efficiency x x

Actual contribution x F/ x (A)

X

Budgeted fixed O/H X

Fixed overhead expenditure variance x (F)/ x A

X

Actual Profit X

Absorption Costing: Cost Reconciliation Statement

Standard cost of production X

Cost Variances F A

$ $

Direct material price x x

Direct material usage x x

Direct labour rate x x

Direct labour usage/efficiency x x

Variable O/H expenditure x x

Variable O/H efficiency x x

Fixed O/H expenditure x x

Fixed O/H capacity x x

Fixed O/H efficiency x x

_____________

Total cost variance F A __

x (F) x A

__________

Actual cost __________

Favourable variances are subtracted from standard costs to reach actual

cost and adverse variances are added.

Marginal Costing: Cost reconciliation Statement

Standard marginal cost of production X

Cost Variances F A

$ $

Direct material price x x

Direct material usage x x

Direct labour rate x x

Direct labour usage/efficiency x x

Variable O/H expenditure x x

Variable O/H efficiency x x

_____________

Total cost variance F A __

x (F) x A

__________

Actual cost __________