A favorable cost variance occurs when:a. actual costs are more than standard costs.b. Standard costs are more than actual costs.c. Standard costs are less than actual costs.d. None of the above.

The correct answer is:b. Standard costs are more than actual costs. Explanation:A favorable cost…

Answered: A favorable cost variance occurs when:…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 10MC: When is the material quantity variance favorable? A. when the actual quantity used is greater than...

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Similar questions

When is the material price variance unfavorable? A. when the actual quantity used is greater than the standard quantity B. when the actual quantity used is less than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price
When is the material price variance favorable? A. when the actual quantity used is greater than the standard quantity B. when the actual quantity used is less than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price
When is the labor rate variance unfavorable? A. when the actual quantity used is greater than the standard quantity B. when the actual quantity used is less than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price
What are some possible reasons for a material price variance? A. substandard material B. labor rate increases C. labor rate decreases D. labor efficiency
When using a standard cost system what term is used to denote that the actual cost is less than the standard cost? Group of answer choices favorable cost variance valid variance unfavorable cost variance none of the above
Explain why a favorable sales-quantity variance occurs.
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When is the direct labor time variance favorable? A. when the actual quantity used is greater than the standard quantity B. when the actual quantity used is less than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price
The variable overhead efficiency variance has nothing to do with efficient use of variable overhead. Do you agree or disagree? Why?
Identify several causes of a favorable material price variance.
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Identify several causes of an unfavorable material price variance.

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A favorable cost variance occurs when: a. actual costs are more than standard costs. b. Standard costs are more than actual costs. c. Standard costs are less than actual costs. d. None of the above.