Determine the most accurate statement about variances. Unfavorable variances normally have a credit balance in the ledger. Managers attempt to maintain unfavorable variances. O A favorable variance is not always beneficial for an organization. Unfavorable variances normally have a credit balance in the ledger.

Determine the most accurate statement about variances. Unfavorable variances normally have a credit balance in the ledger. Managers attempt to maintain unfavorable variances. O A favorable variance is not always beneficial for an organization. Unfavorable variances normally have a credit balance in the ledger.

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Description: Determine the most accurate statement about variances. Determine the most accurate statement about variances.O Unfavorable variances normally have a credit balance in the ledger.Managers attempt to maintain unfavorable variances.O A favorable varianc

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 3PA: What makes a variance favorable? Give an example of a favorable variance involving materials. What...

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(Appendix 10A) Which of the following items describes practices surrounding the recording of variances? a. All inventories are typically carried at standard. b. Unfavorable variances appear as debits. c. Favorable variances appear as credits. d. Immaterial variances are typically closed to Cost of Goods Sold. e. All of these.
Investigating variances from standard is a. always done. b. done if the variance is inside an acceptable range. c. not done if the variance is expected to recur. d. done if the variance is outside the control limits. e. None of these.
What makes a variance favorable? Give an example of a favorable variance involving materials. What makes a variance unfavorable? Give an example of an unfavorable variance involving labor.
The budget variance for variable production costs is broken down into quantity and price variances. Explain why the quantity variance is more useful for control purposes than the price variance.
Acme Inc. has the following information available: A. Compute the material price and quantity, and the labor rate and efficiency variances. B. Describe the possible causes for this combination of favorable and unfavorable variances.
Does the volume variance convey any meaningful information to managers?
Identify several causes of an unfavorable labor efficiency variance.
This variance is the difference involving spending more or using more than the standard amount. A. favorable variance B. unfavorable variance C. no variance D. variance
This variance is the difference involving spending less, or using less than the standard amount. A. favorable variance B. unfavorable variance C. no variance D. variance
Which of the following is a possible cause of an unfavorable material quantity variance? A. purchasing substandard material B. hiring higher-quality workers C. paying more than should have for workers D. purchasing too much material
In comparing actual sales revenue to flexible budget sales revenue, would it be possible to have a favorable variance and still not have met revenue expectations?
The president of McGrade Industries wants an analysis prepared to help explain why the variances computed in requirement 1 occurred. Using the worksheet called PRIMEVAR that follows these requirements, calculate the material and labor variances for McGrade Industries. The problem requires you to enter the input in the Data Section as well as formulas in the Answer Section.