Calculating the variances on three components of change are presented in this second installment of variance calculations.

In the example, how do you explain the increase in revenue versus plan given the change in volume and work days? In this example the change in volume, work days, and rate make up three components, or 100%, of the variance. These components are calculated in section "A" of the template below.

As presented before, note that the percent changes on the volume, work day and rate components are not additive. However, you can see a pattern in how the percent change reconciliation relates to the data in Section "A". Section "C" provides the proof as well as how those percentage tie out to the total (see the green shaded cells).