Each of the following statements is correct regarding overhead variances except: a. Actual overhead greater than applied overhead is unfavorable. b. The efficiency overhead variance ignores the standard variable overhead rate. c. Variable overhead rates are not a factor in the production-volume variance calculation. d. Favorable spending and efficiency variances imply that the flexible budget variance must be favorable.

Q: Gauging the Favorableness of Variances When variances occur, they are described as being either…

A: Direct Labor Rate Variance=Budgeted cost for the actual hours worked-Actual cost for the actual…

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: Gauging the Favorableness of Variances When variances occur, they are described as being either…

A: Given information Actual cost for actual hours of employees = $4,300,000 Budgeted cost for actual…

Q: Considering the variance analysis, which of the following statements is true? O a. When there is…

A:

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: Which of the following is FALSE regarding variances? O A favorable variance, when it occurred, are…

A: The method of costing used to determine deviations is referred to as standard costing. The standard…

Q: Required a. & b. Determine the flexible budget variances and also indicate the effect of each…

A: A flexible budget is one that allows for easy changes in input variables over time.  Flexible Budget…

Q: The labor flexible budget/spending variance amounts to P Indicate in your solution sheet whether it…

A: Flexible budget is that budget which changes with change in activity level. Labour flexible budget…

Q: For each of the following independent cases, fill in the missing amounts in the table: (Indicate the…

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

Q: Alex Company has a large underapplied overhead balance in the manufacturing overhead account. This…

A: Overhead Cost   Overhead cost includes all the indirect expenses incurred by an organization for…

Q: When using a standard cost system what term is used to denote that the actual cost is less than the…

A: Standard cost is calculated using estimated amounts. If the actual cost is less than the standard…

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: Which of the following statements about variable overhead variances is correct?     Variable…

A: Variable Overheads include those costs which are not classified as direct product cost like direct…

Q: rd allocation base C. actual and standard overhead rates D. actual units and actual overhead rates

A: Given: To explain the correct option with the given as,

Q: For each of the following independent cases, fill in the missing amounts in the table: (Indicate the…

A: Direct labor spending variance: A spending variance is the difference in actual direct labor cost…

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

A: The answer is stated below:

Q: 1. What is the activity variance for the revenue? (Indicate the effect of each variance by selecting…

A: Variance analysis is one of the important technique of management accounting analysis, under which…

Q: For each of the following independent cases, fill in the missing amounts in the table: (Indicate the…

A: Direct labor rate variance refers to the difference between actual and standard cost of direct labor…

Q: equired: . Prepare the following variance analyses for both chocolates and the total, based on the…

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

Q: For each of the following independent cases, fill in the missing amounts in the table: (Indicate the…

A: Direct labor: Direct labor includes the wages of the employees who are directly involved in…

Q: Provide one caveat that will affect whether a production-volume variance is a good measure of the…

A: Economic cost of unused capacity:The economic cost of unused capacity indicates the amount that…

Q: Write in detail the possible causes of each of the following variance.   Direct materials price and…

A: Variances: A cost variance is a difference between the actual expenses incurred and the standard…

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: Considering the variance analysis, which of the following statements is true?

A: Variance analysis is the analysis which is the analysis only possible when the company has a…

Q: Required: Compute the following cost variances from the available data. (Indicate the effect of each…

A: The standard costing helps the management in determining variances derived in the actual performance…

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: c. Calculate the direct labor rate variance. (Do not round your intermediate calculations. Indicate…

A: Solution:- c)Calculation of the direct labor rate variance as follows:- Formula Labor rate variance…

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: Using the data below, answer the questions about the Direct Materials Cost (DMC) variances and the…

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

Q: 4. Prepare a detailed overhead variance report that shows the variances for individual items of…

A:

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: The differences between actual and budgeted figures are known as type your answer... 2 Which of the…

A: 1. The difference between actual figures and budgeted figures are knows as Variance.

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: Required a. & b. Determine the flexible budget variances and also Indicate whether each variance is…

A: Flexible budget variance is calculated as difference between the actual and standard cost. If 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: Complete the table belovw for the missing variances. E (Click the icon to view the table.) Calculate…

A: Direct labor total cost variance shows the impact of any overall change in the amount spent on…

Q: Which of the following may appear on a flexible budget performance report? Multiple Choice An…

A: A flexible budget is a budget that includes all the flexibility and change in the output. In…

Q: Help question 26

A: False. Price variance is the difference between the Standard price of the input and actual price of…

Q: Determine the following variances: Do not use negative signs with any of your answers. Next to each…

A: Variances are the deviation in the actual and budgeted value.in the terms of companies operation it…

Q: management by exception”

A: Management by exception is used when there are substantial deviations between the desired and actual…

Q: If production is more or less than the standard volume, is it possible that no flexible-budget or…

A: Definition: Production-Volume Variance: It reports that amount which is the result of the…

Q: Which of the following statements is false?   Standard costs (e.g., how much should be paid for…

A: Statement 1 is true, because standard costs are considered as benchmarks for measuring performance.