If raw materials are carried in the raw materials inventory at standard cost, then it is reasonable to assume that:   the price variance is recognized when materials are purchased.     the price variance is recognized when materials are placed into production.     all variances are prorated between work in process, finished goods, and cost of goods sold.     the raw materials account is overstated.

Q: When the quantity of materials purchased is not equal to the quantity of material used, most…

A: Standard costing means where standard is set for various cost element and actual cost is then…

Q: Do not use negative signs with any of your answers. Next to Materials Variances Actual cost: Split…

A: Introduction:- The following formulas used as follows under:- Actual cost     =AQ×AP Split cost…

Q: In a manufacturing environment, like the GM truck plant in Flint, who has primary responsibility for…

A: Sales Volume Variance is the difference between actual units and budgeted units sold which is…

Q: . Discuss why the details of material, labor and overhead are important factors used in this…

A: A standard cost system is a system that helps a business measure performance and value inventory.

Q: The material price variance is computed by multiplying the difference between the actual price and…

A: GIVEN   Material Price Variance is the difference between the actual cost of Material purchased and…

Q: “The production-volume variance should always be written off to Cost of Goods Sold.” Do you agree?…

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

Q: TRUE OR FALSE Production volume variance is adjusted to the cost of goods sold to get the cost of…

A: Production volume variance is the difference between actual and budgeted overhead. Under variable…

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: Accounting Question

A: a. Compute direct material price variance, direct materials quantity variance and total direct…

Q: how the purchasing department manager may achieve a favourable direct material pricing variance…

A: Variance analysis: Variance analysis can be defined as the study of difference between the budgeted…

Q: Which of the following departments is most likely responsible for the price variance in direct…

A: Standard costing means where standard is set for various cost element and actual cost is then…

Q: Why should a production-volume variance (PVV) that is material be prorated among work-in-process,…

A: Approximating the allocation of fixed costs based on actual output and actual costs so it is not…

Q: Which of the following is a possible cause of an unfavorable material price variance? A. purchasing…

A: Material price variance exists when the actual purchase price is different from the standard…

Q: A variance is the difference between standards and actual performance with materials, labor, or…

A: Variances are used for the performance evaluation of the company. It is also helpful for the…

Q: Where are variances ultimately charged in a standard costing system?   Multiple Choice   Cost of…

A: Standard costing is a type or form of costing system in which standard costs are compared with…

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: Under the two-variance method for analyzing factory overhead, the difference between the actual…

A: The question is related to Standard Costing and is related to two Varaince method.

Q: b. Determine the direct materials price variance, direct materials quantity variance, and total…

A: a) Calculation of Direct material standard cost per unit: Standard number of lb. of brass per faucet…

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: 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: A. Assume the variance is material, what is the variance share of the Finished goods inventory acc?…

A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Q: Most companies compute the materials price variance when materials are purchased. Group of choices…

A: SOlution: True. This is because Most companies compute the materials price variance when materials…

Q: The total manufacturing cost variance is a.the flexible budget variance plus the time variance b.the…

A: Variance means difference between standard cost of producing goods and actual cost of producing same…

Q: hich of the following factor may not be included in the computation of the total materials variance?…

A: Formula Total Material variance = (Standard cost of material allowed for actual output) – (Actual…

Q: b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost…

A: Actual Quantity (AQ)= 5,600 units  Standard Quantity(SQ) = 5,700 units  Actual Price(AP) = $ 5.50…

Q: If the difference is immaterial (insignificant)- the variance is closed to Cost of Goods Sold. This…

A: Variance analysis is used with a view to compare the budgeted and actual costs and ascertain the…

Q: company uses predetermined rate for absorption of manufacturing overhead, the volume variance is…

A: Solution: If a company uses predetermined rate for absorption of manufacturing overhead, the volume…

Q: In a standard cost system, the cost of completed units transferred from Work in Process Inventory to…

A: The standard costing system uses the standard or estimated costs to plan the budgets and control the…

Q: What effect, if any, would you expect poor-quality materials to hare on direct labor variances?

A: Direct labor variance arises due to the differences in the actual and budgeted rates of wage or…

Q: variance in its report, except

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

Q: The journal entry to record the direct materials quantity variance may be recorded Group of answer…

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

Q: Standard Costing and Variance Analysis Standard cost systems set budgets for the materials, labor,…

A: Standard costing is a costing strategy for establishing performance standards that allow firms to…

Q: When a change in the manufacturing process reduces the number of direct labor hours and the…

A: Solution: A. A favourable labor usage variance

Q: Would a production manager be equally responsible for anunfavorable materials price variance and an…

A:

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 statements are true? a. The standard price of materials should include…

A: Solution: a. True, standard price of materials should include delivery charges and any discount b.…

Q: A labor rate variance is due solely to the difference   Between budgeted materials price and actual…

A: Direct Labor Rate Variance: The direct labor rate variance is a measure to determine the variation…

Q: Which of the following statements is true with respect to the materials price variance? Multiple…

A: Materials price variance = (Standard price - Actual price) x Actual Quantity purchased

Q: Help question 26

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

Q: If variable manufacturing overhead is applied to production on the basis of direct labor-hours and…

A: Direct Labor Efficiency Variance is the measure of difference between the standard cost of actual…

Q: Variable factory overhead is applied on the basis of standard direct labor hours. If, for a given…

A: As per standard costing system, the efficiency variances are always calculated by standard cost per…

Q: What effect, if any, would you expect purchasing poor-quality materials to have on direct labour…

A: Direct labor variance arises due to the differences in the actual and budgeted rates of wage or…

Q: a. Determine the direct materials price variance, direct materials quantity variance, and total…

A: Variances These  are the differences between actual results for actual level of activity and the…

Q: Under Standard Costing System, if the journal entry to record usage of direct materials include a…

A: Variance is said to be favourable when a credit to direct material usage variance is recorded.