Explain an example how to calculate cost variance.

Q: Production-volume variance formula

A: Variance: It implies to a difference between the actual and standard outcomes. If the actual outcome…

Q: What is the variable manufacturing overhead rate variance?

A: Variable Manufacturing Rate Variance = php300 (Favourable) Refer step 2 for explanation

Q: Determine the following: Price-Quantity variance Cost variance Cost-Quantity variance

A: A) Price quantity variance =   ( Units sold in 2021-units sold in 2020)/ Rate per unit of 2020…

Q: Define sales volume variance.

A: Sales volume variance (also known as sales quantity variance) occurs when the actual quantity of…

Q: Describe the difference between a direct materials efficiency variance and a variable manufacturing…

A: Variable Cost:The cost which fluctuates on the basis of the output level produced. The variable cost…

Q: From the following information calculate Labour cost Variance, Labour Rate Variance and Labour…

A: Variance can be defined as the alteration between the actual amounts and the budgets being set. The…

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: 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: Who is generally responsible for the materials price variance? The materials quantity variance? The…

A: Material Price Variance is the difference between the standard price and the actual price for the…

Q: hat ty

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

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: explain activity variances and spending variances with example

A: Variance is defined as the difference between the actual and the budgeted or expected amount.…

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 overall variance in overhead?

A: Overhead refers to secondary expenditures spent during the manufacturing and distribution 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: 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: Explain direct labour efficiency variance.

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

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: Define variance

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

Q: Define direct material variance.

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

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: What is the cost price variance? * G

A: Variance: The difference between the actual cost or price and the budgeted (standard) cost or price…

Q: Which method is used to see if a relationship between the cost driver and total cost exists?…

A: Cost drivers means activity units that will cause change in total cost for example, number of…

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: cost volume variance?

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

Q: What are some possible reasons for a material price variance?

A: The reason for material price variance has been shown below

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 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: 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: What is total overhead variance?

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

Q: What types of variances are found on cost center reports? Explain what each variance is measuring…

A: The variances found in the cost center report are determined by measuring actual performance against…

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: What is an example of a company and product that uses variance analysis

A: Companies use variance analysis to compare its actual cost with its budgeted cost or standards set…

Q: Define product cost variances.

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

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.