Which of the following is the most probable reason a company would experience an unfavourable labour rate variance and a favourable labour efficency variance?

Q: The Purchasing Agent in a firm would be most likely to be held responsible for which of the…

A: Variances analysis involves determining of deviations if any by comparing the actual results with…

Q: Describe three reasons for an unfavorable direct manufacturing labor efficiency variance.

A: Direct Labor Efficiency Variance: Direct labor efficiency variance is the variation in the actual…

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: What are the other external factors that affects the variance of a company's gross profit?

A: The difference between sales and the cost of goods sold results in the gross profit. This figure…

Q: When might it be beneficial for a company to use the FIFO method? When is the weighted-average…

A: Explain the benefits of using the FIFO method and the weighted average method.

Q: Using more highly skilled direct laborers might affect which of the following variances a. variable…

A: The difference between the actual time taken to create a product and the time allocated for it is…

Q: Examine the main reasons why manufacturing companies are more sensitive to material price variances,…

A: (a) The main reasons why manufacturing companies are more sensitive to material price variances, as…

Q: Beyond meaning good or bad for business, can you please explain the mechanics of favorable and…

A: The discrepancy between budgeted and actual figures is referred to as variance in accounting.…

Q: Question b Which of the following is a possible cause of an unfavourable materials quantity…

A: Use of inferior raw materials.Explanation:The materials quantity variance measures the difference…

Q: How can the concept of a composite unit be used to explain why an unfavorable total sales-mix…

A: Sales mix variance: The difference between a budgeted and actual sales mix. Sales mix is a…

Q: Kranberry Networks Ltd had implemented a standard costing system to aid it in assessing the…

A: Material Price Variance = ( Standard Price - Actual Price) * Actual Quantity Material Quantity =…

Q: How does persistent favorable variances in an employees cost performance create a management…

A: Favorable Variance: When the actual costs are lower than the standard, (or when the actual revenue…

Q: Hiring of less qualified workers B.An excess of material usage C.Material price increase D.Utilities…

A: Concept introduction: Direct labor Rate variance: this variance shows the difference of standard…

Q: How you differentiate and operate the skilled labour and unskilled labour while calculating the…

A: Unskilled labor simply refers to workers who lack technical training and expertise. Unskilled labor…

Q: the material cost variance of a company indicates a large favorable material price variance and a…

A: Material cost variance is a measure used in management accounting to determine the difference…

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: A price variance measures: Group of answer choices How good a company is in keeping its unit costs…

A: The objective of the question is to understand what a price variance measures in the context of…

Q: Which of the following underlying assumptions form(s) the basis for gross profit variance analysis?…

A: Gross profit variance analysis is defined as the one which analyse the profit variance that comprise…

Q: When the total direct labor cost variance is unfavorable, the direct labor rate variance will (must)…

A: Honor Code: Since you have asked multiple questions, we will solve the first question for you. If…

Q: Cite a specific example of the application of gross profit variance analysis. How will it help the…

A: Variance analysis for any variable enables the entity to break down the variable and establish…

Q: Which of the following statements might cause a labor rate variance?   Group of choices: Hiring of…

A: Labor rate variance is a deviation between actual rates paid to labourers and standard rates. In…

Q: The analysis of variance is an essential management accounting approach used to determine the cost…

A: Management accounting is all about using financial information and analysis to help managers make…

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: Why Fixed Overhead Volume Variance is said to be a favorable variance when the actual output is more…

A: Fixed overhead volume variance is the difference between Applied fixed overhead and Budgeted Fixed…

Q: When is the direcet labor time variance unfavorable? A. when the actual quantity used is greater…

A: Direct Labor Rate Variance: The difference between the actual cost of direct labor and the standard…

Q: 3. Some people suggest that the direct labor rate variance is never controllable. Do you agree or…

A: Labor rate Variance:   The amount obtained when actual cost is deducted from budgeted cost is known…

Q: What effect, if any, would you expect poor-quality materials to hare on direct labor variances?

A: Direct labor variance arises due to the differences in the actual and budgeted rates of wage 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.