Which of the following variances are most similar with respect to the manner in which they are calculat Multiple Choice Labor rate variance and labor efficiency variance. Material price variance and material quantity variance. Material price variance, material quantity variance, and total material variance. Material price variance and labor rate variance. Material price variance and labor efficiency variance.

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: 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: 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: 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: please answers these three fallowing questions: B-1. What is the labor efficiency variance? Note:…

A: Variance is the difference in the value of budgeted quantity. and the actual cost\quantity. Direct…

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: 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: 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: 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: 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: 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: 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: Discuss reasons for the adverse/unfavourable for Direct Material and Labour Rate variances and…

A: Direct material rate variance is the difference between the actual cost of materials and 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: The amount of the activity variance for revenue What is the spending variance for the cost of…

A: Lets understand the basics.Activity variance for revenue is a variance between the planned revenue…

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: 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: Which one of the following best describes the direct material price variance? O a. The difference…

A: Direct Material price variance can be calculated by using the following formula:  (AQ × SP ) -…

Q: What were the price and quantity variances for direct material, respectively? What were the rate…

A: 1. Compute the price and quantity variances for direct materials.

Q: Multiple Choice The material quantity variance is recorded when overhead is applied to production.…

A: Material Quantity Variance There are several costing techniques which was used to measure the total…

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) Compute the total, price, and quantity variances for materials and labor. Total materials…

A: Lets understand the basics.Total Material Variance :— It is the difference between standard cost 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.