Specifically, the following critical elements must be addressed when performing the Budget Variance Analysis using the budget variance worksheet.

The actual quantity of material used was 31,000 with an actual cost of $7.75 per unit. The actual labor hours were 33,000 with an actual rate per hours of $15.

Step 1: Complete A. Develop a variance analysis including a Budget Variance performance report and appropriate variances for materials, labor, and overhead.

Start with the Labor and Materials variance tab.

Standard costs/quantities come from raw materials budget and the labor budget