This Variance Analysis Excel Template offers a simple yet useful example for conducting variance analysis.

Variance analysis is an analysis of all differences between the actual and budgeted figures (mostly financial numbers) of a company. It is often used to evaluate whether a company is over-performing or under-performing the budget during its reporting period. There are various types of variance including:

• Price variance: the difference between the actual and standard (planned) prices
• Quantity variance: the difference between the actual amount of input used and the planned amount of input
• Budgeting variance: the difference between actual and budgeted amounts of fixed overhead cost
• Volume variance: the difference between the amount of fixed overhead cost applied and budgeted fixed overhead costs

Using the column method, a company can calculate and sum up all the variances to determine whether they are favorable or unfavorable variances. Screenshot of the template.   Use this free Excel template to perform your own variance analysis and hit your budget for cost and revenue!

This business tool includes 1 Excel Template