Work out standard cost variance instantly with clear inputs, formula shown and shareable results.
A standard cost variance splits the difference between plan and actual into a rate effect and a volume effect. The rate effect values the per-unit cost difference at actual volume; the volume effect values the output shortfall at standard cost, so the two do not double-count.
Cost variance
Variance = (Standard cost - Actual cost) x Actual units
Volume variance
Volume variance = (Actual units - Budgeted units) x Standard cost
Because it means actual cost came in below standard. Many ledgers show the opposite sign convention, so check before you report it.
Broadly yes, but only once you also account for any change in the standard itself during the period.