Variance Analysis

Can someone help?

I want to analyse the impact of various drivers on a revenue variance.  I'll keep the example simple below:

Budget:  Orders (10) x Units/Order (5) x Price/Unit (£5) = Revenue £250

Actual: Orders (7) x Units/Order (7) x Price/Unit = Revenue £294

So I have a revenue upside of £44.  How can I isolate the variance in £ attributable to each of the drivers e.g. the order variance, the units/order variance and the Price/unit variance so that the sum of the three variances totals the £44 total variance??

Any help greatly appreciated!!

Many thanks.

 

Comments
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Guess what

Richard Willis |
Richard Willis's picture

Treat it as standard costing

Barry Hawkins |

Standard Costing

patvanaalst |
patvanaalst's picture