Define the term variance analysis.

Q: Why do we need to have a "base" for the computation of different types of variances under gross…

A: Gross Profit: It is calculated by subtracting operating expenses from the operating income for the…

Q: for Julu that includor reveDue and spending variances and activity variances. (Indicate

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Q: Direct Materials and Direct Labor Variance Analysis

A: a. Determine standard cost per unit Direct material standard cost per unit = Std. number of lbs of…

Q: Explain the meaning of the joint price-quantity variance.

A: Joint price-quantity variance: Variances are the difference between the actual results and the…

Q: What is the interpretation of the direct-material quantity variance?

A: Direct material quantity variance is a variance analysis tool for manufacturing companies. It shows…

Q: concepts underlying variance analysis

A: Variance analysis is a part of standard costing under cost accounting.

Q: volume

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

Q: significant of variance analysis in cost management.

A: Variance analysis is a tool in cost management to compare and analyze variations in budgeted costs…

Q: Explain favourable variance.

A: Definition:   Variance analysis: Variance analysis is the process of evaluating the differences…

Q: hat ty

A: Variance analysis is a summary statement which demonstrate the difference between planned…

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: Define the term cost variance.

A: Cost variance is the difference between actual costs and budgeted or estimated costs. Many of the…

Q: What is overhead variance?

A: The variance is the difference between the actual figures with comparison to the budgeted figures.…

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: Explain what is meant by the term management by exception. What is the relationship between the…

A: Management by exception: Under this style of management, employees are allowed to take decisions…

Q: Explain the difference between a favorable and an unfavorable variance.

A: Variance: The term variance is used under standard costing system. Variance is actually the…

Q: How are budget variances calculated and used as performance measures? Provide numerical example?

A: budget is the predefined calculations that provide the plan of using the resources and generating…

Q: Why are separate price and quantity variances computed?

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Q: In two or three paragraphs explain the purpose of variance analysis and its benefits and drawbacks.

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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: 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: From the following particulars, calculate the following material variances and give their…

A: Solution:- a)Calculation of Material Cost variance as follows under:- It is difference between the…

Q: What are the relations among standard costs, flexible budgets, variance analysis, and management by…

A: Budgetary control focus on profits maximization of the enterprise and to accomplish this purpose,…

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: Give an example of a Direct Material Price Variance with figures and calculate the variance

A: Direct Material Price Variance is the difference between actual material cost and standard cost of…

Q: Required: the variance analysis for labor.

A: 1. Direct labor Variance = (standard rate x Standard hrs for actual output) - (Actual rate x Actual…

Q: Variance analysis SIS

A: Under variance analysis a standard is set for all costs, revenues etc. and this is compared with the…

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: Topic: Standard Costing and Variance Analysis Question: Create a concept map which discusses on the…

A: Standard Costing and Variance Analysis Always Standard  compared with Actual Result either…

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: 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: Which of the following is the basic purpose of a responsibility accounting?a. variance analysisb.…

A: Definition: Responsibility accounting: The management of responsibility centers by the means of…

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: Define direct labour variances.

A: Definition: Variance Analysis: Variance analysis is the process of evaluating the differences…

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

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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: Explain how to calculate static budget variance.

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

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 :

Q: Variance Analysis

A: [Note: Since you have posted a multi-part question, we will solve the first 3 parts for you. For the…

Q: Define product cost variances.

A: Product Cost variances occur when the standard cost is higher or lower than the actual costs They…