Contract Manufacturing, Job Shop Quoting & Make-to-Order worked example

Job Costing Variance at 110% share of variance scope included: a worked example

This scenario runs the job costing variance calculation on the strong side: 110% share of variance scope included, with every other input held at its documented default. reviewing closed jobs and improving future quote accuracy

The inputs for this scenario

  • Parts or job units with variance: 420 units (unchanged)
  • Cost variance per unit: 7.8 $ / unit (unchanged)
  • Share of variance scope included: 110 % (raised for this scenario; the documented default is 100)
  • Fixed job variance amount: 1,250 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable job costing variance = parts or job units with variance × cost variance per unit × variance scope included) to the inputs above produces each figure below.
  • At this operating point the engine returns 4,854 $ for total job costing variance, the number this scenario is built around.
  • At this operating point the engine returns 11.56 $ / piece for cost variance per unit.
  • At this operating point the engine returns 3,604 $ for variable job costing variance.
  • At this operating point the engine returns 1,250 $ for fixed job variance amount.

How this compares with the baseline

  • Against the tool's baseline example, where share of variance scope included sits at 100% and the headline result is 4,526 $, this scenario comes in 7.24% above the baseline at 4,854 $.
  • Use it during or after a job close to quantify how far actual cost ran from the quoted estimate. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • total job costing variance: 4,854 $ (headline result)
  • cost variance per unit: 11.56 $ / piece
  • variable job costing variance: 3,604 $
  • fixed job variance amount: 1,250 $

Run it with your numbers

  • Every input above is editable in the live Job Costing Variance calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.