An unfavorable variable overhead spending variance may be caused by   the use of excessive quantities of variable overhead items. the payment of lower prices for variable overhead items used. the use of excessive quantities of the variable overhead allocation base. both the use of excessive quantities of variable overhead items and the payment of lower prices for variable overhead items used.

Q: An unfavorable fixed overhead volume variance can be due to all of the following except a.employee…

A: The correct answer is option b. increase in utility costs.

Q: An unfavorable overhead volume variance indicates that:a. Total fixed overhead has exceeded the…

A: Favourable variance: A variance will be termed as a favourable variance when the actual output is…

Q: In gross profit analysis, if the cost variance is zero, such variance indicates that a.…

A: Gross profit analysis is used to find the reasons for difference between the Gross profit margin for…

Q: The flexible budget variance for fixed overhead is known as the   A.) Static budget variance. B.)…

A: Flexible budget variance for fixed overhead is the difference between Actual fixed overhead and…

Q: A company using direct costing in its performance evaluation would normally include the following…

A: Direct costing refers to the concept of evaluating the cost or expenses by only considering the…

Q: If raw materials are carried in the raw materials inventory at standard cost, then it is reasonable…

A: 1 Standard data is calculated by considering budgeted data and using actual data. 2…

Q: The fixed factory overhead variance is caused by the difference between which of the following?…

A: Standard costing is a method of costing which measure the performance by comparing actual cost with…

Q: Which one of the following would not explain an adverse direct labor efficiency variance? Group of…

A: Lets understand some basic of direct labor efficiency variance. Direct labor efficiency variance is…

Q: Management accounting uses variance analysis to explain what and why something happened in the cost…

A: In costing, Variances is the difference between the budgeted, planned, actual cost. This variance…

Q: a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost…

A: Solution:- a)Calculation of Direct labor rate variance as follows under:- labor rate variance

Q: If variable manufacturing overhead is applied to production on the basis of direct labor-hours and…

A: Introduction: Variable overhead refers to production variable costs that vary in response to output…

Q: Outline 2 potential causes for each of the material and labour variances calculated above (Do not…

A: The potential causes for the difference in the variance include:   The differences in the actual…

Q: An unfavorable materials quantity variance indicates that: Multiple Choice standard material price…

A: Unfavorable materials quantity variance means materials has been used more than what was estimated.…

Q: Which of the following is a possible cause of an unfavorable material price variance? A. purchasing…

A: Material price variance exists when the actual purchase price is different from the standard…

Q: unfavorable volume variance

A: Volume variance is the difference between actual sales or production and budgeted sales or…

Q: Each of the following statements is correct regarding overhead variances except: Actual overhead…

A:

Q: 1. If demand is insufficient to keep everyone busy and workers are not laid off, which of the…

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Which of the following is NOT true?     Multiple Choice   An activity variances describes the…

A: Activity Variance The term which are used in the costing techniques which describes as difference…

Q: An Unfavorable Variance results when (check all that apply)   a. Actual costs exceed Budgeted…

A: Variance: The difference between the actual cost or price and the budgeted (standard) cost or price…

Q: TRUE OR FALSE Production volume variance appears whenever actual production deviates from the…

A: Volume variance = ( actual production - budgeted production) x Standard fixed factory overhead rate…

Q: A favorable labor rate variance indicates that   Multiple Choice   actual hours exceed standard…

A: Formula for Labor rate variance : Labor rate variance = (Actual rate per hour - Standard rate per…

Q: The variable overhead spending variance has to do with the efficient use of The overhead items. All…

A: Variance: The difference between the actual cost or price and the budgeted (standard) cost or price…

Q: The total manufacturing cost variance is a.the flexible budget variance plus the time variance b.the…

A: Variance means difference between standard cost of producing goods and actual cost of producing same…

Q: Which of the following is not a reason standard costs are separated into two components?…

A: Standard cost: In the accounting records, the term standard cost refers to the practice of…

Q: In a standard cost system, an unfavorable overhead volume variance would result if there is an…

A: The question is related to Standard Costing and is related to overhead variance.

Q: A production volume variance will exists when:         a. Production volume differs from the sales…

A: Production Variance is a static used by business measure the cost of production  of goods against…

Q: An unfavorable materials quantity variance occurs when the actual quantity used in production is…

A: Note no.   1 Standard data is calculated by considering budgeted data and using actual data.…

Q: If the difference is immaterial (insignificant)- the variance is closed to Cost of Goods Sold. This…

A: Variance analysis is used with a view to compare the budgeted and actual costs and ascertain the…

Q: TRUE OR FALSE When actual production volume is less than expected volume, the production volume…

A: Fixed factory overhead volume variance = (Budgeted hours  -Standard hours required for actual…

Q: In gross profit analysis, a favorable cost of sales variance that includes an unfavorable cost…

A: A favorable variance happens when the cost to produce is less than the budgeted cost. It means a…

Q: Each of the following statements is correct regarding overhead variances except: a. Actual overhead…

A: Statements about overhead variances are correct that are: Actual overhead greater than applied…

Q: Which of the following statements is incorrect with regards to production variances?   Select…

A: Production variance refers to form of measure which is used to compute the cost of production of…

Q: firm’s production facilities were under-utilized by producing less units of products than budgeted.…

A: The difference between the amount projected for fixed overhead expenses based on production volume…

Q: Which of the following is a possible cause of an unfavorable material quantity variance?   A) paying…

A: Variance refers to a change between the expected value and the actual result. This term is usually…

Q: If a company uses predetermined rate for absorption of manufacturing overhead, the volume variance…

A: Introduction:- A predetermined overhead rate is an allocation rate , which is used to apply the…

Q: Which of the following is a correct equation to calculate the fixed overhead production-volume…

A: Variances are calculated to compare the standard fixed with the actual performance of the company.

Q: which of the following is a possible cause of an unfavorable labor efficiency variance? A. hiring…

A: The difference between the Standard labour Cost for actual hours worked and actual wages paid is…

Q: Which of the following statements are true? a. The standard price of materials should include…

A: Solution: a. True, standard price of materials should include delivery charges and any discount b.…

Q: Which of the following would produce a labor rate variance? A. Poor quality materials causing…

A: The correct option is B.

Q: The variable overhead spending variance is most effective in measuring: O how well overhead spending…

A: The variable overhead, also known as the variable spending variance, is the difference between the…

Q: A labor rate variance is due solely to the difference   Between budgeted materials price and actual…

A: Direct Labor Rate Variance: The direct labor rate variance is a measure to determine the variation…

Q: A company product has used more material to produce than the standard amount but takes fewer labor…

A: The correct option with proper explanation are as follows

Q: Which manager would be most responsible for a variance in variable overhead efficiency? a.…

A: Standard cost means the cost which the company is expecting to be incurred on the basis of estimate…

Q: Which of the following variances is caused by a difference between the denominator activity in the…

A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The…

Q: Miller Company has an unfavourable materials price variance. Which of the following would be the…

A: Introduction:- The following formula used to calculate as follows under:- Material price variance…

Q: Which of the following statements about variances is false?   If actual direct material price is…

A: Variance analysis is comparing the actual and standard figures and finding the differences or…

Q: Variable manufacturing overhead is applied to products on the basis of standard direct labor-hours.…

A: Labor efficiency variance = (Actual hours worked - Standard hours allowed)*Standard labor rate per…

Q: Under Standard Costing System, if the journal entry to record usage of direct materials include a…

A: Variance is said to be favourable when a credit to direct material usage variance is recorded.

Q: A favorable overhead spending variance means that:a. Overhead has been overapplied.b. Overhead has…

A: The right answer is option a. Overhead has been overapplied.

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.