Each of the following statements is correct regarding overhead variances except: Actual overhead greater than applied overhead is unfavorable. The efficiency overhead variance ignores the standard variable overhead rate. Variable overhead rates are not a factor in the production-volume variance calculation. 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: 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: In regard to the Sales-Volume Variance, which of the following statements is false. A) The…

A: Flexible budget variance is the difference between an actual result and a flexible-budget amount.…

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: An unfavorable variable overhead spending variance may be caused by   the use of excessive…

A: Use of excessive quantities of variable overhead items might cause an unfavorable variable spending…

Q: Which type of variance causes operating income to be greater than the budgeted operating income?…

A: The variance causes the operating income to be greater than the budgeted operating income is:

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: 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: 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: 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: Direct Materials and Direct Labor Variance Analysis Shasta Fixture Company manufactures faucets in a…

A: Requirement a: Compute the following: (i) Direct material standard cost per faucet. (ii) Direct…

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: 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: When is the direcet labor time variance unfavorable? A. when the actual quantity used is greater…

A: Direct Labor Rate Variance: The difference between the actual cost of direct labor and the standard…

Q: verify whether variances favorable of unfavorable: budgeted cost at actual volue would be 25344…

A: Wage Rate Variance = (Budgeted Rate-Actual rate) x Actual Hours Labor Efficiency Variance =…

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: Describe a common but misleading interpretation of the fixed-overhead volume variance. Why is this…

A: Flexible Budget:   A flexible budget is a budget that is prepared for different levels of 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: If a purchasing manager is able to buy direct materials required in the manufacturing of a product…

A: Total direct material variance: Total direct material variance is the result of difference between…

Q: Which of the following would result to a favorable volume variance? Production is equal to sales…

A: Solution Concept Volume variance      : This variance occurs when there is difference between…

Q: The materials cost variance report for Nickols Inc. indicates a large favorable materials price…

A: Material Price Variance Material Price variance is defined as the difference between Actual price…

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: 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: Determine the direct materials quantity and direct labor time variances. Round your per unit…

A: To calculate variance direct materials quantity the following formula can be used Statement finding…

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

A: Standard costing refers to the method of costing used to find out the variances. Standard overhead…

Q: The Provence Company has the following flexible budget variances: unfavorable direct material price…

A: First we understand what is unfavorable direct material price variance and favorable direct material…

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: 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…