Problem 2 The following income statement data presented by VGP Company for the years ended December 31, 2020 and 2021: 2020 2021 600,000 360,000 240,000 Net Sales 699,600 380,160 Cost of Sales Gross Margin 319,440 Additional data: During 2021, the following transpired that affected net sales, cost of sales, which contributed in the changes in gross margin: a. Units sold in 2021 was 10% higher than 2020 b. Units selling price in 2021 was 6% higher than 2020 c. Unit cost in 2021 was 4% lower than 2020

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

A:

Q: When using a standard cost system what term is used to denote that the actual cost is less than the…

A: Standard cost is calculated using estimated amounts. If the actual cost is less than the standard…

Q: When using a standard cost system what term refers to the differences between actual and standard…

A: Difference of actual and standard cost is measured to calculate the variance. The variances of cost…

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: b) Why are separate price and quantity variances computed?

A: Variances is a word used for finding out the difference between the actual and standard levels set…

Q: Commodore Company uses a standard cost system for its production process and applies overhead based…

A: Cost accounting is a mechanism adopted by entities to find out the true cost of a specific service,…

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: What is the interpretation of the direct-material price variance and the direct-material purchase…

A: Definition: Variance: Variance refers to the different levels in the actual cost incurred and…

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: Labour efficiency variance Fixed overhead price variance  Fixed overhead efficiency variance

A: Labour efficiency varianceLabour Efficiency Variance is the difference between the standard labour…

Q: The total manufacturing overhead variance is composed of flexible budget variance and production…

A: Manufacturing overheads means all type of indirect costs and expenses being incurred in business.…

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: The standard cost of product 2525 includes 3.20 hours of direct labour at $14.15 per hour. The…

A: Formula: Total Overhead variance = Standard manufacturing overhead - Actual Manufacturing overhead

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: me Variance F.) Total Gross Profit Variance G.) Price Variance H.) Price-Quantity Variance I.) Cost…

A:

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: Parallel Enterprises has collected the following data on one of its products. During the period the…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Shaw Incorporated began this period with a budget for 1,070 units of predicted production. The…

A: Variance analysis is an evaluation of the discrepancy between actual and planned data. The sum of…

Q: Why are product cost variances (DM, DL, MOH) broken down and separated into price & quantity…

A: Direct Material Variance Materials Price Variance- A variance which shows the difference between…

Q: Variance analysis SIS

A: Under variance analysis a standard is set for all costs, revenues etc. and this is compared with the…

Q: What are some possible reasons for a material price variance?

A: The reason for material price variance has been shown below

Q: How is the fixed overhead volume variance different from the other variances?

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

Q: iv)  Labour rate variance v)  Labour efficiency variance vi)  Overhead variances (both) d.…

A: Budget variance is the difference between the actual and budgeted costs occurred in a manufacturing…

Q: Materials mix variance B. Materials yield variance

A: Material Mix Variance = SP( RSQ - AQ)  SP means Standard price  RSQ means Revised Standard quantity…

Q: How do you find the standard quantity for efficiency variance?

A: Management should pay particular attention to those that are uncommon or noteworthy. Firms may…

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.