Manufacturing Cost Accounting & Finance worked example

Standard Cost Variance at 72% share driven by variance: a worked example

This worked example runs the standard cost variance numbers for a tougher week than the baseline: 72% share driven by variance instead of the typical 100%. Estimates the total standard cost variance for a production period from a per-unit cost gap and the share of output affected.

The inputs for this scenario

  • Units Produced: 8,000 units (held at the documented default)
  • Cost Variance per Unit: 3.2 $/unit (held at the documented default)
  • Share Driven by Variance: 72 % (the input this scenario stresses; the baseline uses 100)
  • Fixed Period Adjustment: 1,200 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Total variance = units x variance per unit x affected share% + fixed adjustment.
  • Total standard cost variance cost works out to 19,632 $ at these inputs, and this is the headline figure for the scenario.
  • Standard cost variance cost per unit works out to 2.45 $ / piece at these inputs.
  • Variable standard cost variance cost works out to 18,432 $ at these inputs.
  • Fixed standard cost variance adder works out to 1,200 $ at these inputs.

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 26.75% below the baseline at 19,632 $.
  • Use it at period close, during standard-cost roll reviews, or when investigating an unexpected margin swing on a product line. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Total standard cost variance cost: 19,632 $ (headline result)
  • Standard cost variance cost per unit: 2.45 $ / piece
  • Variable standard cost variance cost: 18,432 $
  • Fixed standard cost variance adder: 1,200 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Standard Cost Variance calculator, set share driven by variance to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.