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Why are the standard direct labor and direct materials cost based on actual case production volume rather than planned cases production?
Wiki User
∙ 16y ago
Because they think they will get more money
Wiki User
∙ 16y ago
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What is the difference between actual effort and planned effort expressed as a percentage of planned effort?
effort deviation
What is budget variance?
A budget "variance" is the difference between planned and actual performance.
When computing standard cost variances the difference between actual and standard price multiplied by actual quantity yields what?
Price Variance
What is variance?
In most production management systems, a "Planned" quantity and material cost is calculated based on the associated Bill of Materials (BOM) and Operatons being performed (Route) creating labor and overhead related costs. The "Actual" quantities, material costs, and labor/overhead costs are issued to a Work in Process (WIP) account and the quantities/values of the produced items are recieved from the WIP account. A variance usually occurs when there is a difference between the issued material cost plus labor and overhead and the recieved material cost of the produced item. The reasons for these variances can be differences in planned vs actual quantities, differences in system or planned cost of materials, labor, or overhead vs actual cost, or any other potential reason for an unplanned difference.
Calculate variances from the following data no of men employed standard 100 actual 90 output in units standard 5000 actual 4800 no of working days in a month standard 20 actual 18 avg?
standard actual n.o of men employed 100 90 output in units 5000 4800 no. of working days in a month 20 18 avg.wages per men per month rs.200 rs.198
What is cost price variances?
Price variance is the actual unit cost minus the standard unit cost, multiplied by the actual quantity purchased. The variance is said to be unfavorable if the actual price of the materials is higher than the standard price of the materials.
What is Production Variance?
In most production management systems, a "Planned" quantity and material cost is calculated based on the associated Bill of Materials (BOM) and Operatons being performed (Route) creating labor and overhead related costs. The "Actual" quantities, material costs, and labor/overhead costs are issued to a Work in Process (WIP) account and the quantities/values of the produced items are recieved from the WIP account. A variance usually occurs when there is a difference between the issued material cost plus labor and overhead and the recieved material cost of the produced item. The reasons for these variances can be differences in planned vs actual quantities, differences in system or planned cost of materials, labor, or overhead vs actual cost, or any other potential reason for an unplanned difference.
What is material cost variance?
The material cost variance denoting the difference between the standard cost of materials and actual cost of matrials. The material cost variance is between the standard material cost for actual production in units and actual cost. The total cost is usually determined by two differenct factors of influence viz quantity of materials utilized/ required and price of the materials. The fluctuations in the material cost are only due to the fluctuations in the utility of materials due to many factors. Material cost variance can be computed into two different ways: DIRECT METHOD AND INDIRECT METHOD material cost variance= Standard cost of materials for actual output- actual cost of raw materials. MCV=(S Q AO X SP)-(AQ X AP) Indirect Method: material cost variance= Material price variance (MPV)+Material usage Variance
Is Standard Cost same as actual cost?
Standard cost is that cost which is budgeted at start of production while actual cost is that cost which actually incurred by business both of them can be same if actual cost incurred is same as allocated or determined in budgeting process using standard cost otherwise there will be difference.
An unfavorable material quantity variance indicates?
actual usage of materials exceeds the standard material allowed for output
What source document is used to determine the actual amount of direct materials to record on a job cost sheet a. bill of materials b. production order c.materials purchase order d. materials requisit?
Materials requisition form
Calculate a effort variance as a percentage?
(Actual Effort -Planned Effort)/Planned Effort * 100
What is the difference between actual effort and planned effort expressed as a percentage of planned effort?
effort deviation
What is the difference between actual end date and planned end date?
A planned end date - is an predicted estimation of when something is to cease. An actual end date - is the confirmed end.
What is standard cost method?
Under standard cost method, standard costs for material labor and overheads are determined first and all these costs are charged to production on that standard costs and quantity basis and after that variance analysis is done to find out the reasons for differences in actual costs with standard costs as basis for analysis.
What does a 40 x 48 standard pallet weigh?
A standard 40 x 48 wooden pallet weighs between 30 and 70 pounds. The actual weight varies based on the type and layout of the wood materials.
The difference between actual and standard cost caused by the difference between the actual quantity and the standard quantity is called the?
The difference between actual quantity and standard quantity is called the material quantity variance.
