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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 are adverse variances?
Adverse variances means unfavourable variance which is actual expenses are more than budgted variance.
13-48 overhead variances Calculate the Efficiency variances?
Overhead Variances 13-48 pg 62213-48 Overhead VariancesStudy Appendix 13. Consider the following data for the Rivera Company:Factory OverheadFixed VariableActual incurred $14,200 $13,300Budget for standard hours allowedfor output achieved 12,500 11,000Applied 11,600 11,000Budget for actual hours of input 12,500 11,400From the above information, fill in the blanks below. Be sure to mark your variances F for favorableand U for unfavorable.a. Flexible-budget variance $______ Fixed $______Variable $______b. Production-volume variance $______ Fixed $______Variable $______c. Spending variance $______ Fixed $______Variable $______d. Efficiency variance $______ Fixed $______Variable $______
Can additive variance have a negative value?
No. Variance is always positive and so the sum of variances must also be positive.
In an analysis of variance is SS directly influenced by the size of the sample variances?
Yes it is.
What are the variances in a 4 variance analysis?
efficiency variance, spending variance, production volume variance, variable and fixed components
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 are Possible reasons for the unfavourable efficiency variances in the period Direct material efficiency variance?
Changes in quality of inputs from manufacturer.
What are adverse variances?
Adverse variances means unfavourable variance which is actual expenses are more than budgted variance.
What are the two variances between the actual cost and the standard cost for direct labor?
The two variances between the actual cost and the standard cost for direct labor are the labor rate variance and the labor efficiency variance. The labor rate variance measures the difference between the actual hourly wage paid and the standard wage expected, multiplied by the actual hours worked. The labor efficiency variance assesses the difference between the actual hours worked and the standard hours allowed for the actual production, valued at the standard hourly rate. These variances help businesses analyze their labor costs and operational efficiency.
13-48 overhead variances Calculate the Efficiency variances?
Overhead Variances 13-48 pg 62213-48 Overhead VariancesStudy Appendix 13. Consider the following data for the Rivera Company:Factory OverheadFixed VariableActual incurred $14,200 $13,300Budget for standard hours allowedfor output achieved 12,500 11,000Applied 11,600 11,000Budget for actual hours of input 12,500 11,400From the above information, fill in the blanks below. Be sure to mark your variances F for favorableand U for unfavorable.a. Flexible-budget variance $______ Fixed $______Variable $______b. Production-volume variance $______ Fixed $______Variable $______c. Spending variance $______ Fixed $______Variable $______d. Efficiency variance $______ Fixed $______Variable $______
Can additive variance have a negative value?
No. Variance is always positive and so the sum of variances must also be positive.
Causes material quantity variance?
causes of labor rate variances
In an analysis of variance which is directly influenced by the size of the sample variances?
df within
In an analysis of variance is SS directly influenced by the size of the sample variances?
Yes it is.
What actions should be taken as a result of stock variances?
Variance should be recorded Stock of Goods Dr. Opening Closing stock variance Cr.
If the controllable overhead variance is favorable the overhead volume variance?
volume variance relates to Fixed cost absorption, where as controllable variances arise due difference in actual variable spending per activity measure.
