Which of the following equations can be used to compute a labor rate variance (where AH = actual hours; SH = standard hours allowed; AR = actual rate; SR = standard rate)? Multiple Choice [SH x (AR – SR)) (AH - (AR – SR)] (AH x (AR – SR)) [SH + (AR - SR)

Q: 2021 2020 Sales P190 P180 Cost of Goods Sold 150 150 Gross Profit P40 P30

A: Variance analysis refers to the comparison made between two accounting or financial variables and…

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: the Fixed overhead capacity variance is nearest to?? A. P4,710 F B. P4,710 U C. P5,110 F D.…

A: Fixed overhead Capacity variance = It means difference between Standard cost  of  budgeted hours…

Q: 3. MJ Corporation specializes in producing and selling a single product called Yellow tiles'. The…

A:

Q: The formula for the materials quantity variance is (SQ x AP) – (SQ × SP). O (AQ x SP) – (SQ × SP). O…

A: Introduction: Direct materials Quantity variance is used for the comparing actual and standard…

Q: Rainbow Company Rainbow Company uses a standard cost system for its production process. Rainbow…

A: Variances : It is the difference between the Actual cost and standard cost of production, overheads…

Q: Mandy Co. adopted a standard cost system several years ago. The standard costs for the prime costs…

A: Material price variance = Total material variance - Material usage variance  = -450 - (-2250) =…

Q: The income statement of GMA Company for the years ended December 31, 2020 and 2021 showed the…

A: Price- Quanty variance = 80,000 Favourable   Price- Quanty variance:   = (Actual units sold -…

Q: Haliburton Mills Inc. is a large producer of men's and women's clothing. The company uses standard…

A: Standard costing is a system of assigning an estimated cost to the product (instead of the actual…

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: This refers to the difference between actual and standard hours multiplied by the standard labor…

A: Variance is the difference between actual and budgeted.

Q: OMalley's standard labor cost of producing one unit of Product AB is 1.5 hours at a rate of $12.6…

A: Direct labor variance is the difference between standard direct labor cost for actual production and…

Q: When is the direct labor time variance favorable? A. when the actual quantity used is greater than…

A: Direct labor time is the time taken o produce a unit . when the standard time to make a unit is less…

Q: Which of the following equations can be used to compute a materials price variance (where AQ =…

A: Introduction: Materials price variance: Difference between the Standard price and actual price and…

Q: Compute for the variances of the problem using the information given. Answer the numbers only up to…

A: Here, the standard cost has been used for the calculations. However, for labor rate variance…

Q: The Alpha Company produces toys for national distribution. Standards for a particular toy are:…

A: We know that,  Material price Variance = (Standard price - Actual price)* Actual Quantity  Labor…

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: Chapter 10 Performance Evaluation Using Variance EX 10-11 Direct materials and direct labor…

A: Direct Material quantity variance = (Standard quantity - actual quantity used)*standard rate Direct…

Q: ugust when NUBD made 4,500 units: Standard: DLH per unit Variable overhead per DLH Fixed overhead…

A: Solution: Actual overhead = P26,250 + P38,000 = P64,250 Overhead applied  =SH * SR = (4500*2.50) *…

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: Water Control, Inc. manufactures water pumps and uses a standard cost system. The standard factory…

A: Fixed overhead spending variance = Budgeted overhead - actual overhead Variable overhead spending…

Q: Which of the following is the correct formula for the direct materials quantity variance? O a.…

A: Direct material variance is the difference between standard direct material cost for actual…

Q: The variable overhead efficiency variance is computed and interpreted the direct-cost efficiency…

A: The standard costing indicates the path to the manufacturers regarding the amount incurred in the…

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

A: Total Fixed overhead variance = Actual Fixed overhead - Flexible Fixed overhead   Flexible Fixed…

Q: The labor efficiency variance is the difference between the actual quantity of hours at the standard…

A: Labour efficiency variance measures the utilization of labor in comparison with the expectations. It…

Q: In 2 way variance analysis, materials, labor and variable overhead variances maybe broken down to…

A: In accounting, variances refer to the differences between actual results and expected or budgeted…

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.