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What factors causes Budget Variance?
There are 7 variances associated with a budget ( which are generally calculated for controlling purposes) 1- Material Price variance 2- Material Quantity variance 3- Labor rate variance 4- Labor efficiency variance 5- Spending variance 6- Efficiency variance 7- Capacity variance
What difference between a favorable variance and an unfavorable variance?
Favourable variance is that variance which is good for business while unfavourable variance is bad for business
What is Assumptions for Variance Homogeneous?
Equal in Variance
What is a difference between a pooled variance and a combined variance?
Pooled variance is a method for estimating variance given several different samples taken in different circumstances where the mean may vary between samples but the true variance (equivalently, precision) is assumed to remain the same. A combined variance is a method for estimating variance from several samples, given the size, mean and standard deviation of each. Mathematically, a combined variance is equal to the calculated variance of the set of the data from all samples. See links.
What is the sample variance of 5781010 and 14?
The variance is: 1.6709957376e+13
The variance which measures the deviation of the rate actually paid to labor as from the standard hourly rate is known as?
Labour rate variance .
What causes direct labour rate variance?
Direct labor rate variance is caused by a change in the hourly rate from what you initially planned.
What factors causes Budget Variance?
There are 7 variances associated with a budget ( which are generally calculated for controlling purposes) 1- Material Price variance 2- Material Quantity variance 3- Labor rate variance 4- Labor efficiency variance 5- Spending variance 6- Efficiency variance 7- Capacity variance
How do you calculate the actual labor rate when the standard rate is not given?
The actual rate is the total dollars divided by total hours or pieces. The actual formula is not dependant on any standard rate. The rate variance, however, cannot be determined without the standard rate. The rate variance is the difference between actual rate and standard rate.
Causes material quantity variance?
causes of labor rate variances
What is the Direct labor efficiency variance formula?
(actual time * standard rate) - (standard time * standard rate)
What is variable manufacturing overhead variance?
Act. Hr x (Std. Rate - Act. Rate) actual hours times standart rate minus actual rate
Will the direct labor price variance always be unfavorable if more hours are worked than the standard hours allowed for the actual output attained?
No, Direct labor price variance is created due to difference in standard labor rate and actual labor rate for example standard labor rate per unit is 10 and actual labor rate is 11 then 1 per unit is unfavourable direct labor price variance.
What is variable manufacturing overhead spending variance?
Act. Hr x (Std. Rate - Act. Rate) actual hours times standart rate minus actual rate
How do you identify the idle time variance?
Idle time variance is calculated by finding the difference between the actual idle time and the standard idle time, then multiplying the result by the standard rate for idle time. The formula is: Idle Time Variance = (Actual Idle Time - Standard Idle Time) x Standard Rate for Idle Time. This variance helps identify whether idle time was more or less than anticipated and its impact on costs.
What does a debit balance in the labor efficiency variance account indicate?
a debit balance in the labor efficiency variance account indicates that actual rate and actual hours exceed standard rates and standard hours
What does a credit balance in a direct labor efficiency variance account indicate?
The average wage rate paid to direct labour employees was less than the standard rate.
