Determine the overhead controllable and the overhead volume variances. Indicate whether they are favorable or unfavorable. Overhead controllable variance $ Overhead volume variance

Q: Production-volume variance formula

A: Variance: It implies to a difference between the actual and standard outcomes. If the actual outcome…

Q: What distinction must be made when computing the materials price variance vs. the materials quantity…

A: The answer for the theory question on material price and quantity variances is discussed hereunder :…

Q: A company using direct costing in its performance evaluation would normally include the following…

A: Direct costing refers to the concept of evaluating the cost or expenses by only considering the…

Q: Give one reason to explain the materials variances. Give one reason to explain the labor variances.…

A: One possible reason for materials variances is that the quantities of materials used in production…

Q: what are the possible causes of favourable Material usage variance

A: Introduction:- Standard costs are estimates of the actual costs in a company’s production process…

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: Crritically identify the possible causes of the labour and material variances

A: Labor variances in a business refer to the differences between the expected or budgeted labor costs…

Q: Under the 3 variance method for analyzing overhead, the difference between the actual factory…

A: Under the 3 variance method for analyzing overhead, the difference between the actual factory…

Q: What is the interpretation of the direct-material quantity variance?

A: Direct material quantity variance is a variance analysis tool for manufacturing companies. It shows…

Q: what are the possible causes of adverse Material usage variance

A: The variation in material consumption is determined as the difference between the quantity of actual…

Q: Fixed overhead volume variance is a flexible budget variance. O True False

A: Fixed overheads are those indirect costs which will not change with change in activity level. These…

Q: following information applies to the questions displayed below.] ro Corporation reports the…

A: Total overhead refers to the sum value of total expenses that are expected to be arising out of all…

Q: how to compute quantity/efficiency variance

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: Of the following pairs of variances found in a flexible budget report, which pair is most likely to…

A: Variance in simple terms means difference or change. In costing variance refers to the difference…

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: Determine a detailed list of possible causes of any material, labour or fixed overhead cost…

A: For any manufacturing industry It is important to set standards for the various activities like…

Q: Explain direct labour efficiency variance.

A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The…

Q: Discuss reasons for the adverse/unfavourable for Direct Material and Labour Rate variances and…

A: Direct material rate variance is the difference between the actual cost of materials and the…

Q: Under the three-variance method for analyzing factory overhead, whi.ch of the following is used in…

A: A three way variance has  Efficiency, volume and spending variance. Generally variance refers to the…

Q: standard cost

A: Standard cost systems are cost accounting systems in which standard is set for each item of cost and…

Q: Assume the variance is material, what is the adjustment of the cost of good sold

A: Solution: Adjustment cost of goods sold vary based on variance in material or immaterial.

Q: What are the relations among standard costs, flexible budgets, variance analysis and managment by…

A: Because actual costs cannot be predicted in advance, standard costs are estimations of actual costs…

Q: 2. Yellow Ltd, a food manufacturer, is reviewing its operation for March 2021. The company produces…

A: Variance analysis is very important technique of comparing budgeted costs with actual costs in order…

Q: variance in its report, except

A: A company using direct costing in its performance evaluation would normally include the following…

Q: Explain how the two-, three-, and four-variance overhead analyses are related.

A: Overhead variance is the difference between real and applied overhead. Overhead variance can only be…

Q: Which of the following is a correct equation to calculate the fixed overhead production-volume…

A: Variances are calculated to compare the standard fixed with the actual performance of the company.

Q: Variance is underapplied when: Select one: a. None of the options b. If actual overhead > applied…

A: The variance is the difference between standard and the actual data.

Q: Draw a graph showing budgeted and applied fixed overhead, and show an unfavorable (or positive)…

A:

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.