Product Cost Variance Analysis

This Web-Based, Model-Driven DSS can help managers analyze product cost variances and determine problems that may exist that require additional investigation. Enter values under Assumptions and Estimates and then click Calculate. It shows costs and profit contributions. The results are then displayed. Use this decision support tool to test different sets of assumptions and to see results change.

Profit Contribution -- The dollar amount of the product's price that contributes to fixed overhead and pre-tax profit.

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Assumptions and Estimates				Results
			Standard %	Standard Cost	Actual Cost	Variance
What is the selling price per unit?	$	Labor Cost	%	$	$	%
What is the labor rate per hour?	$	Materials Price	%	$	$	%
What is the time spent (minutes)?		Variable Overhead	%	$	$	%
What is the cost of materials per unit?	$
What is the variable per-unit overhead rate?	$			Profit Contribution	$
What is the expected profit contribution?	$

DSS Home \| About Us \| Contact Us \| Site Index \| Subscribe \| What's New
	Copyright © 1995-2008 by D. J. Power (see his home page). DSSResources.COM^sm is maintained by Alexander P. Power and Daniel J. Power. Please contact them at webmaster@dssresources.com with questions. See disclaimer and privacy statement.