Unfavorable Variance

Unfavorable Variance

The actual costs of a project over and above the normal costs of a similar project. Companies try to avoid unfavorable variances by budgeting carefully.
References in periodicals archive ?
The decrease in segment income was driven by a $10 million unfavorable variance in metal price lag due to decreasing aluminum prices during the third quarter of 2015 compared to increasing prices during the prior year, partially offset by the factors that drove the increase in segment Adjusted EBITDA.
00 X 500 = $3,000 Unfavorable variance ($451) Rate Component AQ (SR - AR) or 580 ($6.
An unfavorable variance may be caused by a variety of reasons, including an out-of-date budget, inexperienced labor, rising input prices, or even a sudden increase in demand leading to overtime.
Since the salesmen were remunerated at the rate of 5 percent for each dollar of sales, the selling price decrease for bourbon generated a favorable commission variance for bourbon and unfavorable variance for vodka, which experienced a price increase.
Meier said he expected a strong first half of 2004, with 3 to 5 percent sales growth, but warned of a decrease in earnings per diluted share because of an unfavorable variance in equity earnings and a higher pension expense.
For example, an unfavorable variance from the $3 per hundredweight standard used in Step 6 could be traceable to the transportation activity.
10 above the standard, resulting in a $270 unfavorable variance.
retail marketing margins, an income tax benefit in the 2011 quarter, and an unfavorable variance from foreign exchange.
The increase in segment income was driven by the factors that drove the increase in segment Adjusted EBITDA, as well as the impact of recording the acquired inventory of Nichols at fair value, which increased cost of sales by $3 million in the second quarter of 2014, partially offset by a $12 million unfavorable variance in metal price lag.
But the deluxe bikes didn't fare so well: 8,356 actually sold, so when we subtract the 8,620 expected sales, this yields an unfavorable unit variance of 264 bikes, and when we multiply that by the weighted average contribution margin, we get an unfavorable variance of $14,704 ($14,688 if you round to the nearest penny).
Selling, general, and administrative expenses for the Other Regions segment were higher for the quarter, due to higher benefit and incentive compensation accruals, larger currency remeasurement losses in Africa, and an unfavorable variance for provisions for suppliers, partly offset by positive variances for value-added tax valuation allowances.