Manufacturing Cost Accounting & Finance worked example

Standard Cost Variance at 110% share driven by variance: a worked example

Push share driven by variance up to 110% and the picture changes. This example computes every intermediate figure at that operating point. A cost accountant rolling up the period variance on a part line where actual cost drifted from the standard.

The inputs for this scenario

  • Units Produced: 8,000 units (unchanged)
  • Cost Variance per Unit: 3.2 $/unit (unchanged)
  • Share Driven by Variance: 110 % (raised for this scenario; the documented default is 100)
  • Fixed Period Adjustment: 1,200 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Total variance = units x variance per unit x affected share% + fixed adjustment) to the inputs above produces each figure below.
  • At this operating point the engine returns 29,360 $ for total standard cost variance cost, the number this scenario is built around.
  • At this operating point the engine returns 3.67 $ / piece for standard cost variance cost per unit.
  • At this operating point the engine returns 28,160 $ for variable standard cost variance cost.
  • At this operating point the engine returns 1,200 $ for fixed standard cost variance adder.

How this compares with the baseline

  • Against the tool's baseline example, where share driven by variance sits at 100% and the headline result is 26,800 $, this scenario comes in 9.55% above the baseline at 29,360 $.
  • It computes the total standard cost variance for a production run and the resulting variance per unit produced. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Total standard cost variance cost: 29,360 $ (headline result)
  • Standard cost variance cost per unit: 3.67 $ / piece
  • Variable standard cost variance cost: 28,160 $
  • Fixed standard cost variance adder: 1,200 $

Run it with your numbers

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

Last reviewed 2026-05-12.