Contract Manufacturing, Job Shop Quoting & Make-to-Order calculator
Job Costing Variance Calculator
Use this calculator to quantify material, labor, machine-hour, outside processing, scrap, and rework variance after a job is produced compared with the quote.
What this calculator does
- Estimate cost variance between quoted and actual job performance.
- reviewing closed jobs and improving future quote accuracy
- The result estimates the total unfavorable or favorable cost variance for the selected job scope.
Formula used
- Variable job costing variance = parts or job units with variance × cost variance per unit × variance scope included
- Total job costing variance = variable job costing variance + fixed job variance amount
Inputs explained
- parts or job units with variance: Use shipped parts, completed assemblies, lots, or routing hours affected by the quoted-versus-actual variance.
- cost variance per unit: Enter actual cost minus quoted cost per unit, including material, labor, machine time, outside services, scrap, or rework.
- variance scope included: Use 100% for the whole job or less for one operation, material family, revision, or variance category.
- fixed job variance amount: Include one-time rework, expedite freight, tooling damage, engineering disposition, or unrecovered setup cost.
How to use the result
- Use it to update standards, correct quoting assumptions, recover change costs, and prevent repeat margin leakage.
- Treat the result as an estimate until the RFQ package, customer drawing revision, material quote, routing, setup standard, shop rate, outside service quote, scrap history, open capacity, due date, and quoted commercial terms are confirmed for the same job, lot size, and customer order.
Common questions
- What is the job costing variance calculator for? Use this calculator to quantify material, labor, machine-hour, outside processing, scrap, and rework variance after a job is produced compared with the quote.
- What information should I enter? Enter parts or job units with variance, cost variance per unit, variance scope included, and fixed job variance amount using the same quote revision, customer order, lot size, routing, and cost basis.
- What does the result tell me? The result estimates the total unfavorable or favorable cost variance for the selected job scope.
- When is the result only an estimate? Treat the result as an estimate until the RFQ package, customer drawing revision, material quote, routing, setup standard, shop rate, outside service quote, scrap history, open capacity, due date, and quoted commercial terms are confirmed for the same job, lot size, and customer order.
Last reviewed 2026-05-12.