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Q: What is unfavorable variance investigation?
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Why would a favorable price variance for material might be the cause of unfavorable quantity variance?

A favorable/unfavorable price variance does not effect your quantity variance. The reason you would see a favorable price variance and an unfavorable quantity variance is because you consumed more materials than your standard allows AND the price you paid for those material was less than your standard price. If you paid more than your standard price, you would have experienced an unfavorable variance in both quantity and price.


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 type of variance is excess usage?

Since actual usage of the direct material was greater than the standard allowed, the excess usage is called an unfavorable variance


What is error variance?

Is the result of unsystematic differences among participants; that portion of the total variance in a set of data that remains unaccounted for a systematic variance is removed; variance that is unrelated to the variables under investigation in a study.


An unfavorable material quantity variance indicates?

actual usage of materials exceeds the standard material allowed for output


What does an unfavorable direct labor price variance indicate?

Unfavorrable direct labor price variance indicates that business has incurred more direct labor cost for production of units of product then standard labor cost. For example if standard cost of direct labor for producing 1 unit is 10 and company incurred 105 for making 10 units then extra 5 is unfavorable direct labor cost variance.


The activity variance for revenue is unfavorable if the actual revenue for the period is less than the revenue in the static planning budget true or false?

true


An unfavorable activity variance for a cost indicates that spending was higher than it should have been for the actual level of activity for the period true or false?

False


A revenue variance is unfavorable if the actual revenue is less than what the revenue should have been for the actual level of activity for the period true or false?

TRUE


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.


How does poor quality materials affect direct labor variance?

If poor quality materials are used it may cause insufficient demand for the products. Insufficient demand may not keep workers busy. If the workers are not being laid off, and unfavorable labor efficiency variance will often be recorded.


List of causes of unfavorable direct material price variance?

1.rise in price. if price will be higher than the budgeted price then unfavourable 2.shortage of suppliers. this led to increase in price