The following data is given for the GB Company. Budgeted production Adual production 26,000 units 27,500 units Materials: Standard price per ounce Standard ounces per com pleted unit Adual ounces purchased and used in production 228,000 Adual price paid for materials Labor: P6.50 8 P1,504,800 Standard hourly la bor rate Standard hours allowed per completed unit Adual labor hours worked P22 per hour 6.6 183,000 P4,020,000 Adual total labor costs Overhead: Adual and budgeted fixed overhead Standard variable overhead rate P1,029,600 P24.50 per standard labor hour P4,520,000 Adual variable overhead costs Overhead is applied on standard la bor hours. 6,000 U 33,000 F 6,000 F 33.000 U

Q: 9. The difference between the Actual cost and the Standard cost for direct labor is called: A)…

A: The correct option is B) Direct Labor Flexible Budget Variance The difference between the Actual…

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: Sheridan Corporation accumulates the following data relative to jobs started and finished during the…

A: Variance analysis is quantitive method of getting compression between actual and standard cost. It…

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: The formula to compute the direct labor rate variance is to calculate the difference between:…

A: The variance is the difference between the actual cost and budgeted cost.

Q: 5

A: An unfavourable labour efficiency variance indicates that more labour hours were used than were…

Q: Labor rate variance is calculated as: Difference of standard hours and actual hours multiplied by…

A: Labor rate variance is a measure used in cost accounting to quantify the difference between the…

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

A: 1. Raw Material Variance= Standard Quantity for Actual Output*Standard rate-Actual Quantity*Actual…

Q: Formula 1 Material Price Variance    Formula 2 Material Quantity variance    Formula 3 Total…

A: Calculate the materials price, material quantity, and the total material variance as follows: The…

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: The following information describes production activities of Mercer Manufacturing for the year:…

A: Variances are an important part of cost control and performance evaluation in the company. Favorable…

Q: not use ai please

A: Let's calculate the labor price and quantity variances based on the provided data. Given Data:-…

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: 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: 75,000 al - 270,000 pounds at a cost of $1,026,000 - 187,500 hours at a cost of $4,125,000 erhead -…

A: Ans. For Raw Material Price Variance we need to compare the price of raw material per unit between…

Q: Variances are computed by taking the difference between which of the following? Multiple Choice O…

A: Product costs are the costs that are directly related to the production of goods or services. Period…

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: 7. The sum of the direct labor rate and efficiency variances is equal to: A) The Flexible Budget…

A: A direct labor rate variance analysis is performed to determine the difference between the actual…

Q: Direct Materials Under normal conditions, Sarah spends $8.40 per unit of materials, and it will take…

A: Material cost variance: Material cost variance is the difference between standard cost of material…

Q: If variable manufacturing overhead is applied to products on the basis of standard direct…

A: Labor efficiency variance = (Actual hours worked - Standard hours allowed)*Standard labor rate per…

Q: Adams Medical Equipment Company makes a blood pressure measuring kit. Jason McCoy is the production…

A: FLEXIBLE BUDGET   Flexible Budget is a Budget that is Prepared For Different Levels of Activities…

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: c. What is spending variance for wages and salaries? Note: Indicate the effect of each variance by…

A: Variances are the differences between the actual values and budgeted values. If the budgeted values…

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

A: Given:Standard direct labor hours per unit: 6 hoursStandard hourly labor rate: $14 per hourActual…

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: 56. When the actual amount of a raw material used in production is greater than the standard amount…

A: When the Actual Amount of a Raw Material Used in Production is greater than the Standard Amount…

Q: The direct labor rate variance is calculated by multiplying the standard hours that should have been…

A: Variance analysis is defined as the procedure followed by the management to study the deviations…

Q: 3 Data 4 Exhibit 10-1: Standard Cost Card Inputs Standard Quantity Standard Price Direct materials…

A: Solution 1: Labor rate variance = (SR - AR) * AH = ($22 - $22.20) *1005 = $201 U

Q: a. Direct materials price variance Unfavorable b. Direct materials quantity variance Favorable c.…

A: a. Calculate direct material price variance: Direct material price variance = (Standard price -…

Q: The standard price for direct materials is used in the calculation of which variances ? Neither the…

A: The objective of the question is to understand which variances in cost accounting use the standard…

Q: Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency.…

A: Variance is the difference between the costs estimated and the actual costs. If the estimated or…

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.