Lesinski Snow Removal's cost formula for its vehicle operating cost is $1,770 per month plus $483 per snow-day. For the month of February, the company planned for activity of 19 snow-days, but the actual level of activity was 24 snow-days. The actual vehicle operating cost for the month was $13,070. The spending variance for vehicle operating cost in February would be closest to: Select one: a. $2,123 U b. $292 F c. $2,123 F d. $292 U

Q: Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450…

A: The direct labor cost variance represents the difference between the actual labor cost incurred by…

Q: Bluemel Air uses two measures of activity, flights and passengers, in the cost formulas in its…

A: A budget is a financial plan which is associated with future. It could be prepared for the…

Q: How would i solve this problem

A: Standard costs are usually associated with a manufacturing company's costs of direct material,…

Q: Courington Detailing's cost formula for its materials and supplies is $2,010 per month plus $6 per…

A: Standard materials and supplies  cost = $2,010 per month + (Actual no. of vehicle x $6 per vehicle)…

Q: Picozzi Snow Removal's cost formula for its vehicle operating cost is $2,060 per month plus $306 per…

A: Vehicle operating cost in planning budget will be calculated as per planned snow days

Q: MCD Corp. spent a total of 810,000 actual variable cost and 290,000 and cost for the month of May.…

A: Spending variance = $60000 U Volume variance = $260000 U

Q: Standahl Air uses two measures of activity, flights and passengers, in the cost formulas in its…

A: Please see the next step for the solution

Q: Dure Corporation's cost formula for its selling and administrative expense is $24,500 per month plus…

A: The variance is the difference between actual and the budgeted data.

Q: In December, Sam Antari, president of Antari Inc., received the following information from Denise…

A: labor efficiency variance =  Standard rate per hour*(Standard hours - Actual hours)   Material…

Q: Standish Company manufactures consumer products and provided the following information for the month…

A: 1. Fixed overhead spending variance = Budgeted Fixed overhead - Actual Fixed overhead  =…

Q: Sheridan WaterWorks manufactures snorkel gear. During the past month, Washington purchased 2,600…

A: Direct material price variance = ( Standard Price - Actual Price ) x Actual Quantity Purchased

Q: Groupe Air uses two measures of activity, flights and passengers, in the cost formulas in its…

A: Activity Variance is calculated for the difference in estimated activity and actual activity. If the…

Q: Wadhams Snow Removal's cost formula for its vehicle operating cost is $1,900 per month plus $430 per…

A: Cost:   Cost can be defined as the cash and cash equivalent which is incurred against the products…

Q: Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450…

A: Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked = ($15.75…

Q: Kaaihue Detailing's cost formula for its materials and supplies is $2,750 per month plus $17 per…

A: A planning budget is the budget which is initially prepared based on expected level of activity A…

Q: Amalgamated Manipulation Manufacturing’s (AMM) standards anticipate that there will be 3 pounds of…

A: Material price variance = (Standard price per pound - Actual price per pound)*Actual quantity…

Q: Dubberly Corporation's cost formula for its manufacturing overhead is $30,800 per month plus $62 per…

A: The activity variance for manufacturing overhead is calculated as difference between flexible budget…

Q: Jaw Titan Company established a standard direct material cost of Php30 per finished unit for its…

A: Direct Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…

Q: Pratte Boat Wash's cost formula for its cleaning equipment and supplies is $2,640 per month plus $47…

A: An activity variance would seem to be the gap between a revenue or expenditure unit within a…

Q: Under normal conditions, Sarah spends $8.40 per unit of materials, and it will take 3.60 units of…

A: Variances are the variations between the estimates so made for the outlays and the actual outlays.

Q: Dubberly Corporation's cost formula for its manufacturing overhead is $32,400 per month plus $54 per…

A: Formulas; Budgeted Manufacturing Overhead = Manufacturing overhead + (Rate per Machine hours x…

Q: Bade Midwifery's cost formula for its wages and salaries is $1,280 per month plus $250 per birth.…

A: The difference between planning and flexible budget is known as activity variance.

Q: Kaaihue Detailing's cost formula for its materials and supplies is $2,750 per month plus $17 per…

A: Variance is an important concept in budgeting which indicates the deviations of budget prepared and…

Q: In December, Sam Antari, president of Antari Inc., received the following information from Denise…

A: GIVEN   n December, Sam Antari, president of Antari Inc., received the following information from…

Q: Pittman Framing's cost formula for its supplies cost is $1110 per month plus $11 per frame. For the…

A: The following formula used to calculate spending variance as follows:-  Spending variiance = Actual…

Q: In December, Sam Antari, president of Antari Inc., received the following information from Denise…

A: a. Standard quantity of material allowed for November production = November production x Standard…

Q: Bluemel Air uses two measures of activity, flights and passengers, in the cost formulas in its…

A: Flexible budget is the standard cost for the actual activity.

Q: The standard cost card for a product indicates that one unit of the product requires 8 kilograms of…

A: Material quantity variance is the variance between the standard material estimated and the actual…

Q: Myers Corporation has the following data related to direct materials costs for November: actual…

A: Direct material  price variance =  Actual quantity ×(Standard price - Actual price)

Q: Hirons Air uses two measures of activity, flights and passengers, in the cost formulas in its…

A:

Q: Normal annual capacity for ABC Company is 72,000 units, with fixed factory overhead budgeted at P…

A: The ideal capacity variance refers to the amount by which the actual production usage declines below…

Q: Dermody Snow Removal's cost formula for its vehicle operating cost is $3,080 per month plus $338 per…

A: Computation of the spending variance for vehicle operating cost in December is as follows:  Formula:…

Q: Sherburne Snow Removals cost formula for its vehicle operating cost is $2,510 per month plus $371…

A: Concept Under the flexible budget the budget is adjusted for the variable cost while keeping the…

Q: BrightWater, LLP uses a standard costing system to collect costs related to the production of its…

A: Please find the answer to the above question below:

Q: Purvis Manufacturing, which produces a single product, has prepared the following standard cost…

A: The variance is the difference between standard data of production and actual costs incurred for…

Q: Swifty WaterWorks manufactures snorkel gear. During the past month, Washington purchased 3,400…

A: Variance refers to a change between the expected value and the actual result. This term is usually…

Q: For the raw materials used to make its stoves, Kleslia, SRL has a standard price of $10.92 per gram…

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

Q: Petrus Framing's cost formula for its supplies cost is $1,790 per month plus $10 per frame. For the…

A: Supplies expense is the cost of consumables used during a fiscal quarter. This might be one of the…

Q: Dermody Snow Removal's cost formula for Its vehicle operating cost is $2,960 per month plus $326 per…

A: Spending variance shows the whether the spending has a favorable or unfavorable effect on the…

Q: Dermody Snow Removal's cost formula for its vehicle operating cost is $3,060 per month plus $336 per…

A: A spending variance is the difference between the actual and the expected (or budgeted) amount of a…

Q: standard for each toothpick motor is 1.25 hours at a standard cost of $9.50 per hour. During the…

A: The labour efficiency variance is the difference between the actual number of direct labour hours…

Q: Your Company’s cost formula for its wages and salaries is $2,500 per month plus $475 per unit sold.…

A: Every company makes a budget in order to analyze the cost estimates and compares it with the actual.…

Q: Pittman Framing's cost formula for its supplies cost is $1,100 per month plus $10 per frame, For the…

A: Budgeted supplies cost = Fixed costs + Variable cost per frame x Budgeted no. of frame = $1100 +…

Q: Dermody Snow Removal's cost formula for its vehicle operating cost is $3,050 per month plus $335 per…

A: Computation of the spending variance for vehicles operating cost in December is as follows:

Q: Pittman Framing's cost formula for its supplies cost is $1,040 per month plus $14 per frame. For the…

A: Spending variance: = Actual results - Flexible budget

Q: Canniff Air uses two measures of activity, flights and passengers, In the cost formulas in Its…

A: Variable expense per flight=Number of flights×Expense=69×$2,638=$182,022

Q: Alibaba Corp uses a standard costing system. The corp established the following direct materials…

A: Formula: Direct material price variance = ( Standard rate - Actual rate ) x Actual quantity

Q: During June, Fraser Company's material purchases amounted to 5,100 pounds at a price of $8.25 per…

A: Variances are the differences between the standard and actual costs of direct material, direct labor…

Q: Javonte Co. set standards of 3 hours of direct labor per unit of product and $15 per hour for the…

A: Given the following information: Standard direct labor hour per unit: 3 hours Standard labor rate:…

Q: Your Company’s cost formula for its wages and salaries is $2,900 per month plus $475 per unit sold.…

A: Spending variance for wages and salaries = Standard cost of wages and salaries - Actual cost of…

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.