Explain and describe the overhead variance.

Q: Define direct labour cost variance.

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

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: Define variable overhead cost variance.

A:

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: 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: What is the overall variance in overhead?

A: Overhead refers to secondary expenditures spent during the manufacturing and distribution of…

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: Describe how flexible-budget variance analysis can be used in the control of costs of activity…

A: Flexibe-budget variance:

Q: If the total materials variance for a given operation is favorable, why must this variance be…

A: Favorable variance means the variance has a positive impact on the budgeted profitability of the…

Q: List the direct labor variances, and briefly describe each.

A: Labor variance arises when the actual expenses associated with a labor activity varies from the…

Q: Determine a detailed list of possible causes of any material, labour or fixed overhead cost…

A: For any manufacturing industry It is important to set standards for the various activities like…

Q: What is the cost volume variance under 4-way analysis?

A: Cost volume variance shows difference in actual costs and budgeted costs due to difference in number…

Q: Explain direct labour efficiency variance.

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

Q: Compute the price and efficiency variances of direct materials and direct manufacturing

A: Standard costing  - This is the method of costing where standard is determined and then its compared…

Q: Define direct material variance.

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

Q: what is the difference between fixed overhead budget variance and fixed overhead volume variance

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

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: Define fixed overhead variance.

A: Fixed Overhead Variance is the difference between actual and absorbed fixed production overheads…

Q: Calculate labor rate and efficiency variances and the controllable overhead variance and the…

A: 1. Labor Rate Variance: = (Actual Hours x Standard Rate) - (Actual Hours x Actual Rate) 2. Labor…

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: Explain an example how to calculate cost variance.

A: Cost variance is the difference of standard cost and actual cost in manufacturing of a product. Cost…

Q: cost volume variance?

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

Q: Fixed overhead spending variance

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

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: Explain how standard costs are established? How do managers evaluate performance using cost variance…

A: Standard costs are those predetermined costs which the company is expected to incur on goods or…

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: Calculate the material quantity variance and the engineering change order (ECO) material variance.

A: Material quantity variance is a category of variance that compares actual quantity and standard…

Q: total materials variance

A: Total materials variance = (Actual Quantity * Actual Price) - (Standard Quantity allowed for actual…

Q: direct materials mix variance for this problem

A: The benchmark is established in advance, and actual performance is assessed in comparison to it.…

Q: Based on the above information, the variable manufacturing overhead rate variance is?

A: Formula: Variable manfacturing overhead Rate Variance= Standard Rate- Actual Rate×Actual Hours of…

Q: Variable overhead spending variances

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

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

A:

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.…