Profit Variances

The profit variances are classisified as follows:

Classification of Profit Variances

Formulae

Profit Value Variance = Budgeted Profit − Actual Profit

Profit Price Variance = Actual quantity[ Standard rate of profit - Actual rate of profit]

Profit Volume Variance = Standard rate profit [Budgeted quantity - Actual rate of quantity]

Profit Mix Variance

= Revised Standard Profit − Standard Profit

Profit Quantity Variance

= Budgeted Profit − Revised Standard Profit