Variance analysis in Excel: price, volume and a budget bridge

Variance analysis in Excel, step by step: compare actual with last month and budget, split sales into price and volume, flag what is material and explain it. Then turn it into one clean waterfall chart, from budget profit to actual profit, with every number tying back to the table. Chapters 0:00 Under budget? Actual vs last month vs budget (favourable is positive) 0:44 Price and volume variance, with the check 1:36 Materiality threshold: over 5,000 and over 10% 2:01 Variance commentary 2:22 Budget to actual bridge (waterfall chart) 3:05 Actuals and budgets live from Xero Formulas used Variance, income: =C6-F6 (actual minus budget) Variance, costs: =F7-C7 (budget minus actual) Variance %: =G6/F6 Volume variance: =(Actual units - Budget units) x Budget price Price variance: =(Actual price - Budget price) x Actual units Materiality flag: Explain when the variance is over both thresholds, the amount in I2 and the percent in I3 (formula on screen at 1:47). All figures are demo company data. Try XO Report free for 14 days: https://xo-report.com Guide: budget vs actual variance in Excel with Xero data: https://xo-report.com/xero-to-excel/b... Music: "Wallpaper" by Kevin MacLeod (incompetech.com), licensed under CC BY 4.0