Chapter 11, Problem 11.1BYP

(a)

To determine

Variance

Variance is the difference in the actual resultant figures and budgeted figures. It can be used to identify the reasons of variance and eliminate the negative variance.

To determine: (a) factors to be considered in setting.

(b)

To determine

(b) alternatives for setting a standard.

(c)

To determine

(c) standard to be selected.

(d)

To determine

(d) standard material cost for each application of the strategic planning model.