Which of the following statements is incorrect with regards to production variances?   Select one: a. Direct material variances are concerned with both the purchasing and the production functions of a company’s manufacturing operations. b. Use of laborers with high hourly wage rates for production activities requiring low hourly wages rate laborers would result in an unfavorable labor rate variance. c. A favorable direct material price variance would yield a negative number. d. The direct labor rate variance and the direct labor efficiency variance add up to the total direct labor variance. e. The quantity used for a given level of output (standard quantity allowed) is used to determine the direct materials price variance. PreviousSave AnswersNext

Q: Explain who is in the best position in the organization to influence each of these variances.   a.…

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Q: The Purchasing Agent in a firm would be most likely to be held responsible for which of the…

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Q: An unfavorable labor efficiency variance is created when: Please explain why I seen answers for both…

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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

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Q: Accounting Question

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A:

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Q: n 2020 standard cost variance analysis report presented by the controller of ABC Corporation, the…

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A: The answer is stated below:

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Q: (1) What is a direct labor variance and how is it calculated?

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A:

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

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Q: Poorly trained workers could have an unfavorable effect on which of the following variances?…

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Q: Which of the following statement(s) is/are true regarding standard costs and cost variances?

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

A:

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Q: Miller Company has an unfavourable materials price variance. Which of the following would be the…

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Q: Which of the following statements about variances is false?   If actual direct material price is…

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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.