Material purchase price variance Material price usage variance Material quantity variance Labor rate variance Labor Efficiency variance
Material purchase price variance Material price usage variance Material quantity variance Labor rate variance Labor Efficiency variance
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 1EA: Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor...
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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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Question
- Material purchase price variance
- Material price usage variance
- Material quantity variance
- Labor rate variance
- Labor Efficiency variance
- Variable overhead rate variance
- VOH efficiency variance
- Fixed overhead spending variance
- FOH volume variance
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