1. A 2. A 3. The debit 4. The variable overhead rate variance is 5. Unfavorable variances appear as variable overhead efficiency 7. Using less direct materials than expected results in at 8. The 9. The 10. When recording journal entries, the actual cost is a 6. The budget is based on a fixed estimate of sales volume. variance represents the difference between actual and expected levels of activity. is typically responsible for the direct materials quantity variance. when the actual variable overhead rate is less than the standard variable overhead rate. entries; favorable variances appear as entries. variance is the difference between the number of actual direct labor hours used and the number of standard direct labor hours multiplied by the standard variable overhead rate. is typically responsible for the direct labor efficiency variance. variance is sometimes also called the denominator variance. and the standard cost is a variance.
1. A 2. A 3. The debit 4. The variable overhead rate variance is 5. Unfavorable variances appear as variable overhead efficiency 7. Using less direct materials than expected results in at 8. The 9. The 10. When recording journal entries, the actual cost is a 6. The budget is based on a fixed estimate of sales volume. variance represents the difference between actual and expected levels of activity. is typically responsible for the direct materials quantity variance. when the actual variable overhead rate is less than the standard variable overhead rate. entries; favorable variances appear as entries. variance is the difference between the number of actual direct labor hours used and the number of standard direct labor hours multiplied by the standard variable overhead rate. is typically responsible for the direct labor efficiency variance. variance is sometimes also called the denominator variance. and the standard cost is a variance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
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Transcribed Image Text:Use the following terms to complete the sentences that follow; terms may be used once, more than once, or not at all:
Static
Flexible
Volume
Spending
Production manager
Variable overhead rate
Variable overhead efficiency
Fixed overhead spending
Purchasing manager
Favorable
Unfavorable
Debit
Credit
Fixed overhead budget
Fixed overhead volume
1. A
2. A
3. The
debit
4. The variable overhead rate variance is
5. Unfavorable variances appear as
6. The
variable overhead efficiency
7. Using less direct materials than expected results in a
8. The
9. The
10. When recording journal entries, the actual cost is a
budget is based on a fixed estimate of sales volume.
variance represents the difference between actual and expected levels of activity.
is typically responsible for the direct materials quantity variance.
when the actual variable overhead rate is less than the standard variable overhead rate.
entries; favorable variances appear as
entries.
variance is the difference between the number of actual direct labor hours used and the number of standard direct labor hours
multiplied by the standard variable overhead rate.
is typically responsible for the direct labor efficiency variance.
variance is sometimes also called the denominator variance.
and the standard cost is a
variance.
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