Compute the direct labor rate and efficiency variances and identify each as favorable or unfavorable.

Q: Explain who is in the best position in the organization to influence each of these variances.   a.…

A: Variance is a term used for measurement of variability. It computes the difference between the…

Q: What is the variable manufacturing overhead rate variance?

A: Variable Manufacturing Rate Variance = php300 (Favourable) Refer step 2 for explanation

Q: The following information is available for a manufacturer. Compute the direct labor rate and…

A: Direct Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked…

Q: need help finding the: - materials price variance & the materials quantity variance - labor rate…

A:

Q: Using more highly skilled direct laborers might affect which of the following variances a. variable…

A: The difference between the actual time taken to create a product and the time allocated for it is…

Q: Camila Company has set the following standard cost per unit for direct materials and direct labor.…

A: Lets understand the basics. Direct material price variance indicates the variance between the rate…

Q: For direct variable setup costs, compute the price and efficiency variances.

A:

Q: Which do you think is more important for controlling fixed overhead costs: the spending variance or…

A: (This is not a subjective matter of opinion but rather is based on accounting principles and theory…

Q: Calculating the Direct Labor Rate Variance and the Direct Labor Efficiency Variance

A: The labor variance is the difference between standard cost for labor and actual cost for labor…

Q: Q.Compute price and efficiency variances for direct materials and direct manufacturing labor.

A: Compute the price and efficiency variances of direct material and direct manufacturing labor:…

Q: 3. MJ Corporation specializes in producing and selling a single product called Yellow tiles'. The…

A:

Q: Explain why a favorable sales-quantity variance occurs.

A: Explain the reason for the occurrence of favorable sales quantity variance:When actual sales exceed…

Q: significant of variance analysis in cost management.

A: Variance analysis is a tool in cost management to compare and analyze variations in budgeted costs…

Q: For fixed overhead costs, compute the spending and the production-volume variances.

A: Spending Variance: Spending variance is the deviation of actual expenses from the budgeted expenses.…

Q: I need help determining the price volume variance

A: The volume variance is the difference between actual and estimated volume. Price variance is the…

Q: Please calculate the change in operating income due to cost leadership. Label each component as to…

A: To calculate the change in operating income due to cost leadership, we need to analyze the…

Q: MASKING is a producer of student-mask for universities and has the following information for the…

A: Actual rate per hour = Total wages / Actual direct labor hours = 842400/104000 hours = RM8.10 per…

Q: How are overhead variances useful in nonmanufacturing settings? Can you think of an example?

A: All overhead variances, even those incurred outside the manufacturing function, are undoubtedly…

Q: If the material price variance is favorable but the material quantity variance is unfavorable, what…

A: Variance analysis is method of analysis of actual data and budgeted data. This helps an organisation…

Q: List the direct labor variances, and briefly describe each.

A: Labor variance arises when the actual expenses associated with a labor activity varies from the…

Q: Provide one caveat that will affect whether a production-volume variance is a good measure of the…

A: Economic cost of unused capacity:The economic cost of unused capacity indicates the amount that…

Q: please solve for these questions:  b-1. What is the labor efficiency variance? b-2. What is the…

A: Variance analysis is a method of measuring the difference between the standard numbers expected by…

Q: OMalley's standard labor cost of producing one unit of Product AB is 1.5 hours at a rate of $12.6…

A: Direct labor variance is the difference between standard direct labor cost for actual production and…

Q: Which method is used to see if a relationship between the cost driver and total cost exists?…

A: Cost drivers means activity units that will cause change in total cost for example, number of…

Q: What makes a variance favorable? Give an example of a favorable variance involving materials. What…

A: Variance is the difference in the value of budgeted cost\quantity and the actual cost\quantity. When…

Q: Q.Compute the direct materials price and efficiency variances.

A: The direct material variance is calculated by taking the difference between the standard cost of…

Q: Record the materials costs, including the unfavorable quantity and favorable price variances. Note:…

A: Materials price variance is the difference between the actual price paid for materials to budgeted…

Q: When is the direct labor time variance favorable? A. when the actual quantity used is greater than…

A: Direct labor time is the time taken o produce a unit . when the standard time to make a unit is less…

Q: Which of the following equations can be used to compute a materials price variance (where AQ =…

A: Introduction: Materials price variance: Difference between the Standard price and actual price and…

Q: Apple Company manufactures wooden chairs and uses a standard cost system which sets predetermined…

A: Cost Variances It is the difference between the actual cost and the budgeted cost and is also called…

Q: Compute for the variances of the problem using the information given. Answer the numbers only up to…

A: Here, the standard cost has been used for the calculations. However, for labor rate variance…

Q: (b) Explain the reasons why Carad Co would be interested in the material price planning variance and…

A: The variations between predicted and actual results of a manufacturing process or other commercial…

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.