Problem 12: MIX AND YIELD VARIANCE BBB produced face powder. BBB has in its budget the following standard for one kilo of face powder: Standard QTY Ingredients Input Grams Standard Unit Standard Total Price cost 200 P3 P600 P2,800 P500 Y 700 Р4 100 Р5 Total 1,000 P3,900

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: 5. The difference between the split cost and the actual cost for direct materials is called the: A)…

A: Analyzing cost variations is essential to managerial accounting in order to comprehend the efficacy…

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: 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: Levine Inc., which produces a single product, has prepared the following standard cost sheet for one…

A: Total material variance :— It is the difference between standard direct material cost for actual…

Q: Requirement 2. Calculate the direct materials cost variance and the direct materials efficiency…

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

Q: The materials price variance should be computed when materials are purchased. Group of answer…

A: Variance: The difference between the actual cost or price and the budgeted (standard) cost or price…

Q: At the beginning of the year, you estimated the following - Production - 75,000 units Raw Material -…

A: Standard price = Estimated Raw material cost / Estimated units Raw material efficiency variance =…

Q: Trini Company set the following standard costs per unit for its single product Direct materials (30…

A: Direct material variance refers to the concept of determining the gap between the estimated quantity…

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: 1. How is the flexible budget used within the variance analysis system to evaluate effectiveness and…

A: 1) Flexible budget refers to a budget that flexes with change in volume or change in activity. It is…

Q: Outline 2 potential causes for each of the material and labour variances

A: The distinction between the standard cost of direct materials indicated for fabricating and the real…

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: 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: Give an example of a Direct Material Price Variance with figures and calculate the variance

A: Direct Material Price Variance is the difference between actual material cost and standard cost of…

Q: Ron Valdez worked for two different employers. Until May, he worked for Rowland Construction Company…

A: Taxation  The term "taxation" refers to the process through which a taxing authority, typically a…

Q: i) ii) a) b) d) explain the meaning of the term/technique, give two examples of its application,…

A: Cost accounting is one of the branches of accounting that deals with the costing and management of…

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.