An actual cost is subtracted from flexible budget cost to calculate flexible budget variance. A flexible budget variance is any difference between the results generated by a flexible budget model and actual results. If actual revenues are inserted into a flexible budget model, this means that any variance will arise between budgeted and actual expenses, not revenues.
Difference between an actual budget and corresponding amount in static budget is classified as
Difference between an actual budget and corresponding amount in static budget is classified as static budget variance. Static budget variances are the differences between what a company or individual thought it would spend in its budget versus what it actually did.
If an actual input price is $70 and budgeted input price is $40, then price variance will be