##### Asked by: Thi Biederbeck

asked in category: General Last Updated: 24th June, 2020# How do you calculate production volume variance?

**production volume variance**is as follows:

**Production volume variance**= (actual units

**produced**- budgeted

**production**units) x budgeted overhead rate per unit.

In respect to this, how do you calculate volume variance?

To **calculate** sales **volume variance**, subtract the budgeted **quantity** sold from the actual **quantity** sold and multiply by the standard selling price. For example, if a company expected to sell 20 widgets at $100 a piece but only sold 15, the **variance** is 5 multiplied by $100, or $500.

Additionally, what is volume variance in cost accounting? A **volume variance** is the difference between the actual **quantity** sold or consumed and the budgeted amount expected to be sold or consumed, multiplied by the standard price per unit. This **variance** is used as a general measure of whether a business is generating the amount of unit **volume** for which it had planned.

Moreover, how do you calculate mixing volume and variance?

The sales **mix variance** measures the difference in unit **volumes** in the actual sales **mix** from the planned sales **mix**.

**Sales mix variance**

- Subtract budgeted unit volume from actual unit volume and multiply by the standard contribution margin.
- Do the same for each of the products sold.

What is production order variance?

**Production variance** is the difference between net actual costs debited to the **order** and target costs based on the preliminary cost estimate and quantity delivered to inventory.