Define the term cost variance.

Q: Define variable overhead cost variance.

A:

Q: What is the direct labor rate variance

A: Solution: Direct labor rate variance is computed as = (SR - AR) *AH Where SR = Standard rate AR =…

Q: Labor efficiency variance

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: TOTAL DM Variance,

A: Standard costing is used to determine the estimated expenses for the production process. In this…

Q: volume

A: The material total variance is the sum of material price variance and material quantity variance.…

Q: What is the direct labor rate variance?

A: The variation between actual results and the budget or standard is referred as variance.

Q: Give the general formulas for determining cost and efficiency variances.

A: Cost variance: Cost variance shows the difference of standard cost and actual costs. Efficiency…

Q: What is the difference between the Variable Overhead Spending Variance and Variable Overhead…

A: The variance is the difference between the actual data and standard output of the production.

Q: What is the overall variance in overhead?

A: Overhead refers to secondary expenditures spent during the manufacturing and distribution of…

Q: How can the total flexible-budget variance be broken down (i.e., what are the constituent parts of…

A: Flexible-budget variance is the variation between the budgeted results shown under flexible budget…

Q: What is the meaningful total variance for performance evaluation purposes?

A: Flexible budget: A flexible budget is a budget prepared by the company for effective evaluation of…

Q: Describe how flexible-budget variance analysis can be used in the control of costs of activity…

A: Flexibe-budget variance:

Q: Among the given options, determine labor yield variance.

A: Formula: Labor Yield Variance= (Standard Mix for actual output- Actual mix for actual…

Q: how to compute quantity/efficiency variance

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: Why are separate price and quantity variances computed?

A:

Q: What is a spending variance and what does it mean?

A: A variance means difference between actual and budgeted amounts. A spending variance is difference…

Q: The direct-material quantity variance is:

A: Direct material quantity variance determines the efficiency of the production department in…

Q: How does the static budget affect the cost and efficiency variances?

A: Definition:   Static budget: Static budget is a master budget that is prepared for only one level of…

Q: Define the term variance analysis.

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

Q: Define variance

A: Variance in statistics is the calculation of the distribution in an information source between the…

Q: Explain and describe the overhead variance.

A: Variance means when the actual cost does not match with the estimated costs. To compute the…

Q: ne following:

A: The variances are given as,

Q: variances

A: Variance means change Variances arise after comparison with standard to Actual.   Types of Variances…

Q: Prepare variance analysis for materials, labor and overhead

A: Variance analysis can be defined as investigation tool which studies the deviation between the…

Q: What is the variable overhead spending variance?

A: A variance is the deviation between an actual result and an expected result and its impact on the…

Q: Find material price variance

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: In general, variance analysis is said to provide information about _________ and __________…

A:

Q: The cost price variance is

A: Cost price variance refers to the difference between the actual cost and standard cost of units.…

Q: cost volume variance?

A: Cost Volume Variance:  (Budgeted units - Actual units produced) × Budgeted price per unit

Q: What is the relationship between management by exception and variance analysis?

A: Management by Exception: Management by exception is the process of finding the deviations in the…

Q: How is the fixed overhead volume variance different from the other variances?

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

Q: How do you find the standard quantity for efficiency variance?

A: Management should pay particular attention to those that are uncommon or noteworthy. Firms may…

Q: Define and explain the relationship between simple variance analysis and flexible variance analysis.

A: Simple variances analysis is the study of  deviations of the actual result against the forecasted…

Q: List the direct materials variances, and briefly describe each.

A: Direct material variances: Direct material variances are the direct material price variance and the…

Q: total materials variance

A: Total materials variance = (Actual Quantity * Actual Price) - (Standard Quantity allowed for actual…

Q: Complete the standard cost variance analysis

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: is direct material variance a measure of?

A: Direct material variance is the difference between standard material costs and actual material costs…

Q: What is total overhead variance?

A: Overhead means indirect costs incurred in the production and selling of goods. It can be…

Q: List the variable overhead variances, and briefly describe each.

A:

Q: List the fixed overhead variances, and briefly describe each.

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

Q: in preparing variance analysis for both variable overhead and fixed overhead costs, both include…

A: The answer for the theory question on Spending variances is discussed hereunder :